John Cordes

Recapping My Great Calls on Oil

Ok, lets see, what will todays oil bulls put out, hijacking of oil tanker, hurricane danger, pipeline disruption, Israel fly over in Iraq? If you believe these daily concoctions then you accept the fact that oil is/was trading on rumors not market numbers. If you think they were concoctions meant to pump the price in time for settlement, then there is no arguement. Oil speculation simply means that price momentum is disconnected from reality and driven by cynical price manipulating forces more or less artificial in nature. Peak oil is a reality of course, but has little to do with futures contracts two or six months from now. It's fair to say that commercial space flight is a reality, but no one is buying space suits just yet. It's a tad early to corner that market.