So, crude oil is down to $58.00 USD or thereabouts.
Interesting, isn't it?
What do you think? Do people really think oil, and therefore gasoline prices are going back down to stay?
It was all just "speculators," wasn't it? Yeah, that probably explains it.
Notice how the author bashed Matt Simmons by calling him a "gadfly." Hmmm.
It seems that Twilight in the Desert really pissed off the Saudis.
I don't doubt it. Kind of a "Syriana" moment, huh?
Well, you might not want to hold your breath just yet.
After all, there is such a thing as the "intrinsic value" to any asset. And oil is the most valuable type of asset we got.
I find it hard to believe that anybody could fail to understand the simple logic of merely comparing one liquid to another. Such as, perhaps, a cup of coffee to a cup of oil?
Duh!
How tough could it be?
Which would you rather have? A cup of oil, or a cup of coffee?
Well, try pouring some Starbucks into your Cadillac Escalade and see how far you get.
If you really think that oil is only worth $58.00 a barrel, you have got a lot of 'splainin' to do!
I wouldn't start holding your breath that oil is going to stay this low, or go down to $3.00 USD a barrel like it was before the 1973 oil crisis!
And, if you really believe that the Saudis are going to "prove up" their reserves from 263B to 450B, billion barrels, that is, then I've got some property on the bottom of the ocean I'd like to sell you!
At this point, I have to admit, my "prediction" of $200.00 USD per barrel by December 2008 is not likely to happen. The best that I can guess right now is that the world got a "get out of jail" card that will give us about 3 to 5 years more to prepare for the Peak Oil disaster.
In other words, the hump at the top of the Peak Oil mountain is getting flattened out by the Global Economic Crisis.
But, make no mistake about it, Peak Oil is sneaking up on you right now......
Breathe, while you still can
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