In the oil market, we see both a bubble…and a useful commodity responding to economic forces. If you want to see a “pure bubble,” you have to look at something like the tulip mania…
July 18th, 2008 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "oil market"
The Confusing Big Picture in the Oil Market
We are out of oil; at $130, we regard it as too speculative. But that doesn’t mean that the oil bubble is going to burst anytime soon…or that the real price of oil won’t be even higher 10 years from now than it is today.
May 30th, 2008 | Bill Bonner | 1 comment | Continued
Where Will Future Oil Production Come From and How Can Investors Profit Today?
If you can say with assurance why oil prices are US$127, you are more assured than most. OPEC believes oil strength is really just U.S. dollar weakness. A stronger dollar means lower oil prices, and probably lower commodity prices in general. There are other theories that seek to explain the high oil price, including a “fear premium,” oil as an inflation hedge, and pure speculation by professional traders.
May 22nd, 2008 | Dan Denning | 0 comments | Continued
Why the Oil Price Will Correct Itself
You’ll recall, dear reader, some time ago we guessed that the feds’ efforts to keep consumers consuming were essentially inflationary…and that the inflation they caused would tend to go more into gold and oil than into economic growth or asset prices.
May 16th, 2008 | Bill Bonner | 7 comments | Continued
The United States Matters Less and Less to the Oil Market
The United States matters less and less to the oil market – but is still very important, of course. We have guessed that the United States of America is a sell. Its money, its paper, its property, its labor, its stocks, its industries, its debt – sell them all.
April 24th, 2008 | Bill Bonner | 2 comments | Continued