Friday, March 28, 2008

Oil Bubble - ready to burst?

During the past 10 years we've experienced bubbles in the stock and housing markets. Whenever a bubble bursts money tends to flow into other markets. With prices over $107 per barrel recently it looks to me like oil is a bubble market. There is not technical reason for oil prices to be this high. People point to increased usages by China and India but I believe oil prices are primarily fear driven. Technology exists to get oil for much cheaper prices and I think that the oil price will drop soon. Maybe this discovery will be the catalyst to a sharp price drop.

If I had the money I would short oil futures right now

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