As to treating oil just like any other commodity, forget it....

As to treating oil just like any other commodity, forget it. Nothing on earth happens without oil, it is a lifeblood, and whilst demand might abate somewhat, we are stuck with oil to carry on life as we know it.

I think stock market spectators have a problem in solely focussing on the recent peak price, as if somehow it properly reflected future price curves for oil, when it did not. Whereas speculators alone were responsible for this sharp rise, and now that the US Congress has brought then to task and established a tight watch on the futures market, the price of oil has retreated noticeably.

I mean, when congress discovered that fully 80% of the oil futures contracts were written for speculation alone, they killed the practice

Unfortunately a lot of these highly visible price retreats have been interpreted as a phenomenon due to demand destruction only, as if somehow oil producers are headed for trouble.

They are not, globally, demand for oil is still at record levels, given say, a view of demands taken in five year blocks, compared to past global needs using the same time frames.

One must bear in mind, even at todays cheap price, oil is more than 100% higher than what it was four years ago.

Now with the massive social advances in the standard of living in India and China during that time frame(four years), does anyone realistically expect demand destruction to kill the price of oil.

If so, then they are due for a reality check


Seeing we have some bright souls here who are good at reasearch: It's my view we should be digging for information on oil volume alone. That is, what is now being shipped around the globe on a monthly basis, and how that volume compares to past records

The logic of the above should be apparent to all but the witless, who seem to rely so heavily on sentiment alone for decision making