Oil below US$90 just then, I'd just like to give a shoutout to all the sceptics who agreed oil was a bubble.
I told ya so!
The best thing to do now is not to read Bloomberg or any news and just look at the chart and wait for USO (that's the ticker for US Oil in charting softeware) to stabilise. We've been in an environment where fundamentals are very bleak in existence, those hurricanes did nothing to the oil price!
Now that the US$700 billion package has been formed and the USD rally finishes then I think we'll see oil stabilise and rise slowly.
Demand is still increasing in emerging economies, everyone still needs fuel and no magic green car solution has been formed yet.
Also: "June 10 (Bloomberg) -- The International Energy Agency, the energy adviser to 27 nations, cut its forecast for global oil demand for a fifth month as record prices dented consumption.
The IEA reduced its 2008 forecast by about 70,000 barrels a day to 86.77 million barrels a day from 86.84 million last month, the Paris-based agency said today in its monthly report. That leaves demand growth for this year at 0.9 percent."
Wow .... 70,000 barrels, that's enough to cause SUCH a glut (that was sarcasm).
I'm tipping oil will fall to about US$75. I'm buying WPL @ $35 - 45.
