08 August 2008

You Heard It Here First

Remember when I posted this about the coming oil price collapse?

Now comes this story.

"Just possibly, it means that what investors refer to in shorthand as the great 'oil up' story has finally revealed itself not as the fundamental reflection of scarce supply that its adherents liked to claim, but as a simple, speculative bubble that was always going to burst."

That's not to say, of course, that an Israeli bombing raid on Iran will not cause another spike or that our energy problems are over. It does point out, however, that the media and the government love to keep us all worrying about something and that this 'oil crisis' was hyped for a number of reasons. I'm reading some financials predicting oil back down to $40-$70 range by the end of '09.

I suppose we can throw away those tire gauges.

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