Good article, but trading at $120 isnt' exactly a bubble collapse yet when oil was at $30 per barrel just 5 or 6 years ago.
The fundementals still suggest higher oil prices are here to stay.
The pleasant thing here is that, if the slide continues, the sting will be remembered by speculators for a while. Hopefully that memory will provide stability to the market.
Oil should go no lower than $100 where price support exists.
I don't think we will ever see $30/bbl oil again. The supply of $30bbl oil just isn't there (i.e. oil costs more to extract and deliver than $30/bbl at the current rates of consumption).
I've posted this before, but imo nothing will affect the price of oil more than the rhetoric and our relationship with Iran. We've backed off for now, but if the rhetoric steps up and bombing Iran looks imminent (by either us or Israel), we'll see oil skyrocket again. If Iran is actually bombed, $150 oil will look cheap.
I am going to predict that oil will be below 100 dollars per barrel by the end of the month. The market took another 3 dollar drop today and there has only been one day in the past month that it rose.
I predict that I have no idea where oil will be at any point in the future...
Even if oil prices drop I hope that americans continue to curb oil usage and look into other energy sources and technology.
So where have the speculators moved off to? Or did they lose their shirts?
Oil may stabilize, and we do need to look at other options moving forward. Renewables, conservation, more drilling, oil shale production. Get after it. Limit the environmental impact, but start today and do something. Don't talk. Don't cry. Don't complain that people are making money. Don't like how it is being done? Find a better way. Support those looking into different solutions. Don't sit on your bum and cry about things though. Last I checked, that never even fixed a flat tire. Don't sit there listening to people telling us we can't. We are Americans dammit. We can do anything.
acrozier22- I'll give you that one, nobody knows where oil will be because nobody knows what will happen in the next 6-12 months. But I'll make a bet with you with $150 oil being the over-under. If Iran is bombed, I'll take the over.