Oil bubble to burst: Forbes

Herald Sun ^ | 30 August 2005

[flashbunny]

'everyone in america' ??? Get a freaking grip.

[flashbunny]

you really need to get a grip. You are apparently clueless.

[Lejes Rimul]

If you didn't read the part in the article where Forbes says that all funds are speculating in oil, you're the clueless one.

[RobRoy]

Thanks to a nasty divorce and child custody case, I rent and own no stock or retirement.

Let all the bubbles burst... ;^>

[xzins]

I'd bet money that Forbes is correct. The price increase from 30 to 70 doesn't make sense in the time frame mentioned.

If 30 was a market price 2 years ago, and it's more than double that today, then where is the great new need that wasn't there then, but is here today?

[MikefromOhio]

there isn't one....

its all speculative....kinda like the Housing market....

[Ace of Spades]

Mass suicides on the NYMEX ensue. Can't wait!!

/grabs popcorn

[Mike Darancette]

I hope that this ruins Soros and Buffet.

[Mike Darancette]

As much as high gas prices are a burden, I think people like the idea of having pensions when they retire.

So we should continue to pay high prices so the highly speculative hedge funds are safe? Do pensions really invest in the hedge funds? Is that wise?

I'm curious to know how close to capacity is the Oil Reserve and how many barrels a month do we buy.

[GOP_Lady]

Mr. Forbes was my choice for President TWICE!

[COEXERJ145]

Oil is up around $3.00 right now.

[biblewonk]

It's just like "Trading Places" and the lesson from the Duke brothers. For the moment, everyone is betting that the price of oil will go up, so they are pulling their money out of Frozen Concentrated OJ and Pork Bellies and putting it all on Oil. When the bubble breaks it will also look like the Dukes when they realized Murphey and Akroid scammed them.

Love that analogy and that movie.

[MikefromOhio]

yeah...my parents too, at least the 2nd time.

that was before I could vote :)

[MattinNJ]

Thanks to a nasty divorce and child custody case, I rent and own no stock or retirement

Sorry to hear that, but when you're on the couch with one hand on the remote and the other in a bowl of popcorn watching "Rescue Me" or "Shield" and no one is breaking your chops you can't tell me it's not the best money you ever spent ;-)

[Dave Olson]

This time last year, the price of oil was about $45/barrel. According to the Oil Market Report, from 3Q 2004 to 3Q 2005 both the supply and demand for oil in the world grew from 82 mb/day to 84 mb/day.

So there is no reason, other than speculation, why the oil price should be higher now than it was a year ago. My guess is that it will drop down to that level by year's end.

[1Old Pro]

I hope he's right, the sooner the better.

[1Old Pro]

For instance, we bought two Diesel cars that get 50mpg to replace two 22 mpg gasoline vehicles.

Yes, but over the past 5-10 years SUV purchases have gone thru the cieling so all those people who traded in their 30mph VW bug to a 14mph Tahoe are using twice as much fuel. Add to the the ongoing population shift from failed Democrat cities to suburbia where they drive twice as far and you can see how demand has gone up.

I would be interested in knowing what the ave mpg of the population of autos on the road is and what simply doubling that mpg would do to demand.

[American_Centurion]

Unless they were cashing out their 401 (k) they lost nothing but some tally marks.

Now if they were directly invested in stocks, like lots of folks I know who bought Cisco stock in late 99 early 00, THEN you will see some arse losing.

[HamiltonJay]

Mr. Forbes is correct, the price of oil does not remotely match fundamental facts.. its futures manipulation by the same folks that brought you the tech bubble.

[NeoCaveman]

If you didn't read the part in the article where Forbes says that all funds are speculating in oil, you're the clueless one.

He says all hedge funds. You need a million dollars in net worth to even qualify to buy into a hedge fund.

To the average American, hedgefunds don't normally mean anything....Of course there was that big one a few years back that sparked off the Asian currency crisis but it was bound to happen anyway.