One More Thump on the Oil Drum

If you read this blog fairly often you know that I am not convinced of the fundamentals in support of anything close to the current world oil price. I think a lot of people believe and therefore are buying in hopes that the price will go higher. As long as news supports shortened supply due to political unrest or some sheik wants to deny me access to the oil I should rightfully own under his sand pile, I become more and more convinced as every day's market closes. Not higher. Just closes. Today was actually no exception. Oil banged away and crossed into 140 range for a few minutes. That's not a break. That's just trading range. 130-140. We are stuck and there is nothing on the horizon short of a war to move it higher. There is a ton to things to make it go lower. That's where the real pressure is.

We are awash in Oil. Only rumor and innuendo keep the price high. I suspect some of that is people hoping to cash out at these high prices soon.

The rest of us are biding our time in expectation of the absolutely inevitable crash to come.

If it looks like a bubble it is
Bye Bubble, It looks like the price of oil is peaking
Dotcom Crash, Credit Crunch, Oil Bubble

When the longs have exhausted all hope of driving the market higher it will, it must, it is guaranteed to head south. Then the question is how far. Far. Very far.

I may not know Jack, but I know a bubble when I see one.