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Crude Oil Going Parabolic: The Good News and Bad News

Oil will not even correct. You may see fluctuations of +-$10 around the $130 mark, before oil stabilizes at about $150. Only then will some asian governements stop subsidizing fuel.

What's the Real Story With the Price of Crude Oil?

The world currently uses just over 80m bpd. How many barrels are actually physically stored by speculators?? Probably a totally insignificant ammount. So hoarding speculators is not the answer.

Hedge funds, index funds, leveraged structures?? In the end its the SPOT price that counts, and thats controlled only by supply/demand!

And demand is high!

Will high gas prices cause Americans to drive less? Not if you take Israel as an example. Here we already pay $9 per gallon (due to high taxes), and I dont see less traffic jams on the roads!!
Wages here are lower than in the US, taxes are higher, but it appears that no-one is willing to cut back on driving!

The Oil Shortage, and Other Fairy Tales

oil prices, like everything else, are based on supply&demand. If there is too much oil being produced, who is buying it all?? The only situation in which oil prices will drop is when OPEC produces so much oil, that there will be no customers to buy it all!! Do you really foresee such a situation in the near (or far) future??

The Chinese are roaming the globe, looking for more energy (oil) sources, and signing long term contracts with anyone who has oil. Are the Chinese also fooled by the talking heads of CNBC??

At $130 a barrel, I believe anyone with oil is now pumping flat out. I don't think that OPEC or anyone else has any spare oil production capacity at all!