Don’t Buy The Hype
And it's really just that, you know. Hype. I've said it before and I say it again. I don't care what product or commodity you are talking about, but it's never been more so than with oil. Once you have allowed something to become over-inflated the market will make adjustments and the price will tumble. Look at housing. Bubbles pop, eventually. You must have consumers to have a market and a market to have value. Period. No market, no value. Now, oil will always have a market, but it can and will become very contracted. Oil is a necessity, not a luxury. But, people are already adjusting: fewer meals out, shorter trips, spending less on consumer goods all around. But there are those out there that want you to believe that not only is it possible to have oil above $200, but that consumption will continue to grow. Everything else thrives because of oil. And it can just as easily die without affordable access to it. IF true supply/demand fundamentals were at work here, I don't think it would be anywhere near this level. And if we were producing more of our own oil and building the needed refineries, it would be affordable for years and years to come. But hey, I'm no expert. I'm just a talk radio guy who reads, thinks and analyzes for himself and shares his most humble opinions with you.
An article today from Reuters points to Saudi Arabia as the next price pressure switch. Click here to see the full article.