debtacid

Why I'm Not Buying Oil's Recent 'Correction'

Anyone notice that the spikes up in oil happen when the Fed lowers the interest rate? Everyone still talks about the price of oil as if the value of the dollar is constant. Historical charts and models are useless if they don’t take debasement in to account. For oil, anticipation is more important than history. If traders anticipate that the Fed will start raising interest rates to slow inflation, then oil will drop. If tensions in the middle east rise, oil spikes up. I think these are the two most important factors in oil right now.