Semper Gumby

Speculation and the Price of Oil

Crude will continue to climb in price. Strong demand, flat to shrinking supply, increased global money supply, geopolitical tensions, pension funds, Morgan Stanley and Goldman Sachs, etc... The best week for the dollar in three years yielded a mere $3 dollar pullback for crude oil. The West doesn't live an hour without touching something that is petroleum based. If oil is full of speculation then the NYSE or NASDAQ is as well. Equity holders speculate that earnings for XYZ company will be greater than last quarter. I have spent the last twelve years of my life serving as a Marine running off to every corner of world that has oil or gas deposits. Briefings usually focus on countries with Oil and Gas interest. I have done the math and doubters will still be there when oil is $500 / barrel.