MNSL

Rough Economic Seas Toss Many Boats, Including Oil Price

Excellent article.

You have more facts than top economist and analysts. Really stock options and higher corporate compensation are part of current bubble.

$35 Oil: Steve Forbes Was Off by Two Years

Excellent article.

Steve Forbes is correct. Most top oil analysts, economists couldn’t forecast oil prices correctly.

They said oil is going to $ 200. Gold will go to $2000. Now oil is back to $35. Can we believe? I think it will go to $20 sooner than later.

Next in line there are many inflated assets and commodities to fall further. With wealth destruction and demand destruction how can we expect higher prices for assets?

In a way it is good for consumers. It is also good for many industries who struggling to survive. Inflation will come down. Consumer purchasing power will increase.

This is good lesson for all types of bubble funds who invested in hot sectors, derivatives, real estate and highly risk credit and interest derivatives etc, such as Sovereign funds, Top banks, Insurance giants, hedge funds etc. Really they have destroyed other people’s money, wealth, pension funds and retirement’s funds etc.

Could not they invest in some productive industries instead?

Which Way for the Prices of Oil and Gold?

You are right. This is an excellent article. Now it is time to leave the commodity mareket. Very soon inflation will come down. Some companies, sectors and industries will benefit most.

Time to Short Both Long-Term Bonds and Crude

I think we should sell oil stocks and other commodity related stocks now. This is the greatest period to make profit by unloading your existing investment in commodities. We had more than 7 years of bull market for commodity. We are in the final stage of current commodity bull market.

All hot commodity indexes including oil index will come down soon.

Very soon we will see collapse in the commodity market similar to property market. We are in the bubble stage now.

Oil prices will come down sooner than later.

This is the time to short all hot sectors such as oil and other hot commodities.

Can Saudi Arabia Push Down the Price of Oil?

Yes this time Saudi Arabia will put down oil price.

I think Saudi Arabia will increase their oil production very soon. Government in Saudi Arabia also wants solutions to the inflation now. They also fear about collapse of other industrial sectors. They think higher oil prices are not sustainable and it will hit hard their economy as well. In addition I think they have realized their future depend on strong world economy. They know that their investments also going to lose due to present credit crisis in the world.

With slower world growth oil consumption will come down. It is happening all over the world now. People are more careful now some use bicycles and scooters instead of cars now.

Now George Soros see bubble in the oil market
I heard Goldman analysts Arjun Murti has reiterated his view that oil prices could fall to $75/barell once demand come down.

Given above facts we can see strong correction in the oil market soon. I think this is the longest commodity bull market we ever had. Bull markets will not last for ever.

1,238 Billion Barrels of Oil Reserves: Is This an Oil Price Bubble?

Yes oil is in bubble stage now. Only few intelligent people like you know the correct position of the oil market. Thank you for publishing this article and educating people.

We do not know much about derivatives, complex instruments involved in the oil futures market. Further we get all types of players in the market now. They play paper trading almost 24 hours per day. On top of that speculators and new players also very active now.

Very soon there will be burst in the commodity market together with oil.

Already people are converting their vehicles to LPG gas, replacing their cars to scooters and bicycles, using pool cars to work and more careful now in managing their fuels through out the world. Airlines are reducing capacity and travel routes. Some factories and plants are finding difficult to run their operations and planning to shut down soon. People are unwilling to pay current price for oil. If that is so will they pay $200 dollar per barrel. No way. If it happens not only there will be total collapse in the oil market but also in other sectors.

In addition Saudi Arabia is going t announce increase of oil production in next meeting.
Even these people have realized higher oil price going to hit them back hard in the long run. US Dollar will go up in next 12 months and even Fed will increase interest rate.
Currently we see rapid rise in some commodities. Similarly there will be rapid decline in these commodities in next 12 months. You can also see volatility in the market. What all these meant for?

So instead of going oil barrel to $200 it will come down below $70 a barrel of oil very soon.

Time to time people bring different theory to mislead people. In 1980s also they talked about peak oil. We know what happened to oil market then.

Still there is no scarcity in oil as such and can produce oil to meet demand.

Is Oil a Bubble? Part Two

I partly agree with your article.

Definitely we see speculation in the oil market in addition to demand factor. Everybody into commodity now. We know what happened to all types of bubbles in the history. Very soon oil bubble will burst.

Crude Oil Prices: Bears Will Soon Win Out

Excellent article. I completely agree with this article.Yes we will soon see bear market in oil. Anything go up has to come down. History has proved many times.