Raúl Ilargi Meijer, The Automatic Earth: (Re-)Covering Oil and War
The first thing that popped into our minds on Tuesday when WTI oil briefly broached $30 for its first $20 handle in many years, was that this should be triggering a Gawdawful amount of bets, $30 being such an obvious number. Which in turn would of necessity lead to a -brief- rise in prices.
Apparently even that is not so easy to see, since when prices did indeed go up after, some 3% at the ‘top’, ‘analysts’ fell over each other talking up ‘bottom’, ‘rebound’ and even ‘recovery’. We’re really addicted to that recovery idea, aren’t we? Well, sorry, but this is not about recovering, it’s about covering (wagers).
Same thing happened on Thursday after Brent hit that $20 handle, with prices up 2.5% at noon. That too, predictably, shall pass. Covering. On this early Friday morning, both WTI and Brent have resumed their fall, threatening $30 again. And those are just ‘official’ numbers, spot prices.
Read more ....
WNU Editor: If you want to read up on a Doomsday scenario because of the collapse in oil prices .... this article is for you.
Hat Tip to Zero Edge for this link.
1 comment:
Can't happen due to low oil prices, cuz everyone knows we are at peak oil.
Besides AGW will kill us all 1st.
Ask Al Gore and John "FORBES" Kerry
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