junkyarddog

10 Notes on the Crude Oil Fixation

It's easy to pick pieces of information and string them anyway you want. The arguments the author makes could serve very well for people who believe oil is in a bubble. For example: supply / demand.

Has demand for oil increased over 600% since 2001 like oil prices did? Weak dollar: has the dollar lost that much value to justify these high prices? Even after losing over 30% in value since 2003, oil went higher much disproportionally to the dollar.

I'm not arguing either way, every one already has their own opinion. But to say that contracts "help" stabilize somehow the price of oil and this is not a speculative market -- as in my very simple 2 examples above -- is ground breaking theory. I just wish the author would elaborate more and make a case for that.