I had started writing this article a few weeks back in June as oil threw a head fake and rocketed higher. This is what I originally wrote and the links I originally posted:
Well well! Just when we thought we might get a break,
AP: Oil prices rise sharply as OPEC president says prices could pass $150; Libya may cut output
back to now…
Speculators? Yes…They Cause Our Problems? No…
Now it is true that there are speculators involved in the oil price. But as I tell people who come to my workshops, don’t believe that puke that the politicians spit at us that a few speculators in some hidden boiler room are largely to blame for oil’s high price. There IS an underlying DEMAND issue that I have commented on before on my site (use the search function to the right to find old articles) and this will drive oil higher.
However, in the interim, I did expect oil prices to fall to a level that makes the average fool think that high oil prices have finally ended. You KNOW when people starting thinking that, it is bound to head higher again. I wouldn’t be surprised if oil fell to $100 or even $90 per barrel. This would certainly be cause for celebration on Wall Street but it won’t last long.That’s probably when I’ll consider recommending locking in home heating oil prices.
I Was Slightly Off Before…
Like I said, I did expect that we would see a correction a few months back when I wrote THIS article,but maybe it’s happening now – or maybe like then, what we all expect won’t happen and the price will resume its rise – who knows? With supplies decreasing and crazy talk coming out of the Middle East (where else does crazy talk come from? oh yeah, Russia and Venezuela), we can only expect further excitement. All I know is, it’s too crazy for me to know for sure what will happen.If you have the crystal ball, drop me a note.
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