“Probably means they go higher.”
Won’t go much higher, not for long anyway. Those fracking wildcatters out in West Texas are bringing rigs on line as I’m writing this. Whenever oil goes above $50 ~ $60 those guys get busy...
Right. Suddenly a lot of people can make money at these prices. Drill, baby, drill.
I agree with you, but that is in fact a market call. Perhaps over a longer term; Right now, oil, which of course is a commodity, behaves like commodities do. Meaning everybody rushes to one side of the boat like teenagers at a Bieber concert, and they go farther than anybody imagines in their wildest dreams. Remember $128 oil? $26 oil? That does not mean that oil will not eventually come down, but on war fears in the ME, oil is ramping quite strongly. I would not rule out a sudden move to $80. It will go where few imagine it will go.