Thread: $105 oil
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Old 09-29-2008, 08:24 PM   #231 (permalink)
ankit
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Quote:
Originally Posted by dremd View Post
I don't KNOW what is going on either; but I can speculate :-)


Price of oil was over inflated by speculation, My belief is that crude should land around $120/ barrel. Bubble has burst, is in crash right now.

Refiners were squeezed very hard by poor crack spread, we are paying them back right now.

I'd be amazed if there will be much gas rationing going on in an election year unless the oil companies favorite party has something to gain from that.
I has heard about the artificially high prices from...well speculation . I had also learned that there was a bubble in crude oil, just as there was in the housing market (some of which is the same money transferred from one commodity to another). But for some reason I hadn't realized that it had burst when the price started dropping a while ago. Don't know why it didn't hit me. For some reason, I just thought it had to do with the elections and politics.

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