Beris

Is the Oil and Energy Bubble About to Burst?

So far, so good. both oil and gold have been steadily sliding since I pointed out that the mini bubble might soon be bursting (gold at that time was $840, and oil $98). Trend is still down, and I don't expect it to bounce for a longer-term rally until they reach key support elements. Just an opinion.

Is the Oil and Energy Bubble About to Burst?

Well, I guess we are keeping our untapped resources for rainy days :) We'll show them all. Once the whole world is out of oil, we'll have it :)

Absolutely is political. Oil has been manipulated for years, and as long as it serves certain political interests we are doomed. Therefore, I am a strong supporter of any other alternative we can get, but I guess we are long ways from coming up with anything meaningful. We need a miracle to replace the oil, I guess. (not because of oil being used as a fuel, because we can come up with that), but because it will be hard to find a replacement for petroleum that is used in producing everything we know. But I guess any bit helps.

Is the Oil and Energy Bubble About to Burst?

Yes, good points, but isn't this the whole idea by Chinese govt: to reduce subsidies? As you pointed above, their refiners are subsidized to straighten their balance sheets as they sell at the loss. But I believe that government idea is to stop that practice... but then again, as you pointed out, it's hard to believe that the intention is sincere, coming from the government "raised" on potential corruptive practices and/or family ties for years.

Is the Oil and Energy Bubble About to Burst?

That's a good point alpha24/7. I couldn't agree more that there is abundant supply at these prices. Market will soon find its equilibrium. Thank you for your comments.

Is the Oil and Energy Bubble About to Burst?

Thank you for reading and for your comments, Ernie. I am sure that one day $100 oil will look cheap, but in my opinion, for this oil bull market to continue it first needs to have a reasonable pullback.