Don’t forget about the value of the Dollar. A healthy robust Dollar makes for much more buying power, especially with a commodity that has historically been traded for Dollars. One our currency goes back in the crapper, oil prices will go back up.
What’s odd about current oil prices is how speculators have curtailed their knack for artificially bidding up prices every time a camel barfs in the desert.
This won’t last long too many powerful people and governments stand to lose with low oil prices. Someone will eventually do something desperate and then up it will go. Or the Fed will start back up with its money printing schemes and that will debase our money again.
“What’s odd about current oil prices is how speculators have curtailed their knack for artificially bidding up prices every time a camel barfs in the desert.”
How would you like to be the guy who purchased a million barrel of oil at 140 per over in the mid east only to have it’s price drop by 40% before you could get it to port in the US. That has a tendency to knock the feathers out of speculators.