[bluefish]

I’m inclined to agree with this. Note that this was published a little over two weeks ago.

The price of oil has gone parabolic. That can’t be sustained, regardless of the commodity. Price moves like the most recent, combined with non-stop coverage of it, is always bad for those that fall for it and buy in. I wonder how many green traders are getting ready to learn their first big lesson in the old pump and dump routine.

For those so inclined, spare me the “it’s different this time” babble. I heard it with the dot coms and I heard it with real estate (hmm.. diminishing supply, increasing demand, etc. were all present in real estate). A bubble is a bubble, regardless of the asset.

Now, I’m only speaking from a trading perspective. The long-term trend in oil remains up and there is no reason to expect that to reverse. However, near-term, betting against oil might not be such a bad idea.

[shaft29]

“The price of oil has gone parabolic.”

Not to nitpick, but I think quantum is the proper term.

[NVDave]

Agree, with one addition: we could say the same for many commodities.

Gold and silver appear to have finally broken down a bit. They usually lead the commodity boom on the way up... and down.

[marktwain]

It is the instability of oil producers that is pushing the bubble, at least in part. It will be interesting to see what happens when the bubble busts and Iran and Venezuela, who are already overspending with $100 plus oil, have to make do with $60 oil.

[PAR35]

For those so inclined, spare me the “it’s different this time” babble. I heard it with the dot coms and I heard it with real estate

I've seen it with oil before.

Much of the price 'increase' in oil is a result of the crash of the dollar. If the dollar recovers, oil will move sharply down.

[adm5]

I’m no T. Boone Pickens or anything, but I am giving oil a price target of $50-$60/bbl within 2 years.

DUG is your friend for those wanting an easy way to short crude.

[subterfuge]

The price of oil has gone parabolic. That can’t be sustained, regardless of the commodity..... I wonder how many green traders are getting ready to learn their first big lesson in the old pump and dump routine.

But I see FReepers on here everyday saying our only way out is to buy Oil company stocks. Just sit back and watch the profits roll in!