Thank goodness we've moved past the era of speculative bubbles.....

[marmar]

I'm sure the :sarcasm: icon isn't necessary.


Jun 9, 2009, 3:21 p.m. EST

Crude ends above $70 for first time in 7 months

NEW YORK (MarketWatch) -- Crude oil futures finished above $70 a barrel for the first time in seven months on Tuesday, lifted by weakness in the dollar and forecasts of higher prices from the Energy Department. Crude oil for July delivery rallied $1.92, or 2.8%, to end at $70.01 a barrel on the New York Mercantile Exchange. That's the first time a front-month crude contract closes above $70 since Nov. 4 of last year. In Washington, the Energy Information Administration said crude oil prices are expected to average $58.70 a barrel this year, up from the $52 a barrel the EIA had forecast a month ago.


http://www.marketwatch.com/story/crude-ends-above-70-for-first-time-in-7-months

[RUMMYisFROSTED]

1. The toe in the water.

"How high can we go?"

[Zynx]

2. The speculative logic in that paragraph is hilarious.

Oil rallies on its own due to speculation about inflation. These higher prices are above what the EIA had forecast for oil prices so the EIA increases its estimate of oil prices for the year. This increase in the forecast causes oil to go higher. Never mind that oil demand is flat to down and oil inventories are massive.

[Skink]

3. If countries like China Hedge prices years out from Chavez the U.S....

must be the only place that these bubbles occur.

[paulsby]

4. good

i was pounding the frigging table for people here to buy oil two months ago.

it was a no brainer.

fwiw, speculative bubbles are part and parcel of capitalism. they are not a bad thing. they are a thing.

they have occurred for centuries, as long as capital markets have existed.