[curiosity]

There is no bubble, people. High oil prices are here to stay. Get used to it.

[trumandogz]

You are walking on dangerous ground here at FR but you are 100% Correct.

High Oil Prices Are Here to Stay.

It is likely that we never see $100.00 oil but rather $175.00 to $200.00 oil within the next 24 months.

[bluefish]

A lot of people like to promulgate the “Peak Oil” myth to justify current oil prices.

I am certain that we reached “Peak Real Estate” more than a few years back, and do recall a lot people saying real estate was not a bubble.

[SAJ]

We will agree to disagree on this topic, professor, that high energy prices are here to stay. You have taken the affirmative, I shall take the negative, quite cheerfully.

And, a bit later on, we will have a conversation about the workings of mkts, whether manipulated -- as they obviously are just now -- or not.

May I commend to your attention the study of the ''open interest'' in the various futures exchanges: NYMEX, SIMEX, and DUBEX (ICE/IPE can't be studied right now -- they don't present OI figures)? Just a thought. Look it up, professor, over the past 3 days...you might just learn something.

FReegards!

[Freedom_Is_Not_Free]

BAH! I heard all this about the housing bubble. “There is no bubble,” they said. “Supply and demand,” they said. “There aren’t enough flippers to control the market,” they said. “Home prices only go up,” they said. Bullcrap. It was all bullcrap, and now you are ready to believe the same thing about oil.

Please explain to me WHY oil is up 48% year-to-date alone? Increasing demand? Bullcrap. Oil futures are forward looking and we haven’t even begun to see the world demand destruction caused by these leap-frogging oil prices.

I’ll never remember to say “I told you so”. Take note and remind me when the oil bubble bursts and it becomes obvious to everybody and his brother.

Never mind. The people who told me the NASDAQ was correctly priced because it was a “new economy” and “profits don’t matter” never bothered to come back and eat crow. The people who said there was no housing bubble never bothered to come back and eat crow. Now why would the same type of gullible fools who believe there is no oil bubble be any more likely to eat crow when they are proven as wrong as the previous fools.

No, never mind. You needn’t bother. But I am still waiting for that explanation how issues of supply and demand alone have caused a 48% increase in oil cost year-to-date. I’ll give 20% of that to a collapsing dollar. I also know that the FED must eventually Volker the funds rate and that will strengthen the dollar, IMMEDIATELY lowering the dollar price of oil by 20%.

Now what is the other 28% year-to-date cost rise due to?

[HamiltonJay]

Hhahahah.... I heard the same thing about housing prices and tech stocks.... oh and as a child I recall a similar thing too “Ignore the man behind the curtain”.

[rurgan]

Demand is higher than supply and has been for several years. Have you HamiltonJay or jveritas looked at the graphs below?

The following graphs of world oil supply and demand clearly show that world oil supply has not met world oil demand for several years. Demand has been greater than supply.This , the most basic law of economics, the law of supply and demand should put an end to all this scapegoating of the speculators (the free market), hopefully.

Proof that demand has not met supply for several years

We have enough oil in the ground , in oil shale , in coal to oil, etc. But democrats have not let us get to that oil and they won't unless the American people make them. How can we have enough oil production/supply when for decades Democrats have said no to more oil drilling, no to more nuclear power plants, no to more refineries, no to drilling in ANWR, no to drilling in the OCS, no to oil shale, no to coal to oil liquefaction, no to coal mining, no to coal power plants, etc. etc. and so on ad infinitum?