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Oil prices up again: What the f*** does it mean? August 19, 2009

Posted by mytruthaboutoil in Oil (general), Oil prices.
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I plead guilty!!! I genuinely believed that the current economic meltdown would have a positive impact on the oil business and that it would help stabilizing the prices and scare the hell out of the usual speculation experts.

It has indeed been the case … for less than six months. Don’t get me wrong, I’m not complaining about oil ups and downs. If market was reasonnable, I would be another unemployed college graduate. Anticipating oil prices variations is my job (and I actually love it).

However, let’s try to be pragmatic for once (as we all swore we now would be when the global crisis started). Who could believe than in less than a semester oil value has almost double?

There’s no rational explanation to this situation. It’s not like World Economy had suddenly and promptly recovered. There are positive signs here and then (or no negative ones anymore, which means the same by the end of the day), but demand for oil has not doubled over the past months. I have no formal information that it will do so in the coming months.

Demand’s not everything, but it seems that we’re back to our crazy and meaningless ways of doing businessl. Just like if nothing had happened : who remembers the crisis? Oil prices dropping from $150 to $35 a barrel in less than six months.

Myths and speculations seem to be the main variables nowadays.

For me it means frenetic and endless work hours, but also probably good bonuses to come. For you, it will probably mean that you’re gonna have to pay a little more your car fuel and heating…

I swear that this time I’m not responsible. Too many of my friends already put the blame on me for the financial metdown. ..

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