Gary Savage

60 Minutes on Oil: Did Anyone Verify Anything?

Geez The spike in oil was caused by Bernanke's money printing binge. How hard is that to understand? Coincidentally the price of gasoline shot up right after the government dumped a bunch of free money into the market in the form of tax rebates. Now the verlocity of money has cratered because the world is in an extended debt purging period. As long as that continues the dollar will rise and commodities will struggle.

Inflated Oil Prices: Your Tax Dollars at Work

Seems unreasonable to think that oil has been moving up for the last 4 1/2 years because of speculation or terroist premium or what ever other excuses the oil bears come up with. The simplest explanation is that there is a supply/demand imbalance. To say that oil has been rising because of speculation would be like saying in 87 after the crash that the stock market had been rising only on speculation. The simple fact was that stocks where very undervalued in 82. The bull market was just gettng started in 87 just like the bull market in commodites is just getting started in 2006. All bull markets have scary corrections, thats the nature of bull markets.

Oil is Done for Now: A Technical Analysis

The author might what to compare this years chart to last years chart. You'll notice so far this year they are exactly the same. The one exception is that the decline from the Apr peak never even got close to the 200 DMA. Oil has been incredibly strong this year. I really look forward to these bearish articles it lets me know there is still plenty of room for oil to soar yet.

GS