Steelturtle

Myth and Meaning in the Great Oil Game

Ok.
This article is accurate in some respects, but many key points are missing as to why we have seen such a bull hysteria run in prices.
1: Oil is traded in dollars, and any change in the dollar affects the price. Don't believe me? Just watch the indexes - dollar down, oil up. Oil is now being traded as a hedge against our currency. You can thank genius boy Alan Greenspan for slashing interest rates so low during his reign, that the dollar is now not worth anything. Thanks to the fed.
2: What happened to basic laws of supply and demand? Have we suddenly lost one half of the worlds supply of oil? Has it gone offline suddenly? No. why then the double in price over 6 months? Could it be that our housing market bust that has now completely decimated the equites and financial markets, spurred investment into commodities as a place to put money safely?

This is a day of new fundamentals. Crude oil is now a financial investment/cheap and easy hedge fund, and not just a cheap commodity.
Its is being used to recover funds lost in the credit bust, and a bruised and battered stock market. Why not? I wish I had bought contracts when it was $100. I'd be a millionaire by now. It will crash, as it always comes back to true supply and demand. Right now, the price does not justify current demand.
Last week it was trading at 134, this week its 145. $11 in one week? Please, are you kidding?? You mean to tell me this is a market not dominated by hysteria and greed?
Get Real.