oil myth

Crude Oil Flips to Contango

Oil prices will correct in near future. Today's pullback might signal a shift in the trend as it confirms that the price spike has been primarily due to speculation since the pullback happened in the absence of any demand/supply news. If oil continues to rally higher from now, it will send a clear signal as to the speculative nature of this rally and might result in some kind of regulatory intervention by the government. Also, my guess is that the Fed will hike rate in June as inflation is now the primary concern which will give a floor to the dollar and then more importantly, we find that Obama is the presidential nominee in June as well. Once that happens, I guess the current fed machinery will gear their strategy keeping in mind the new boss in the office next year and we already know the radical changes coming when Obama becomes the President.
To summarize, I guess the oil rally is over and there are strong downward pressures for commodities going forward.