cdcaddy

Recent Oil Spike: 'Irrational Exuberance'?

I'm not so sure the bubble will burst until we collectively do more to slow consumption. Supply and demand can be irrational of one another if their are outside influences that can impact either ie: no one really sees China or India slowing in growth in the short term [hence if supply were to tick up - there would be a home for it] With no way of replenishing oil there's no way for it to recede unless new sources are found - even then you have to look at the higher cost associated with
tapping into it. Face it - the world economy has some real soul searching to do to negate a dwindling natural resource. Add to this the fact that OPEC has no incentive to curtail rising prices until it adverserly
effects buying - right now - there's no incentive for them.

I would like to see how the market would react if we were to discontinue the speculative trading of oil [if it's even possible]