Kezorm

Odds Favor Short-Term Slip in Crude Prices

Until a couple year ago, there was always more supply of light crude than there was demand. It was like a rope which always had slack. For a number of natural and artificial reasons, that has changed. Statistical arguments that do not recognize that fact are bogus. The more you pull on the rope now, the tighter it gets. Until someone begins to remove artificial inhibitions on potential oil supplies, or until high price destroys enough demand, the rope will tighten, price will climb and arguments based on the statistical behavior of prices during times of surplus supply... will fail.