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96 comments on Could $30/bbl Oil Happen Before New Year’s Eve?
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96 comments on Could $30/bbl Oil Happen Before New Year’s Eve?
Comments can no longer be added to this story.
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RC wrote;
Perhaps the commenter could offer the readers his thoughts on why oil prices collapsed?
It could be interesting if RC could elaborate about all the benefits from a highly volatile oil price before he returns to the trees.
I'm sorry I was not clearer in what I wrote, I had thought my reasons for the oil price to collapse from the the high were implied in the post: You can only pile one fear on top of another for so long before they start tripping over each other, or you have simply run out of plausable reasons to fear a higher price, and even the one you have does not add up, thus, a drop. The sellers of fear ran out of anything to sell.
Volatile oil price good or bad? Depends on which side of the trade your on. For the people who make the market in oil and the speculators who hope to win, volatility is their life blood. For the small consumer it probably isn't worth much, except to propel serious thoughts of an alternative, either in lifestyle or technology. Volatility is not good or bad in todays world with the high speed internet and floods of hedge fund money moving about, volatility just is, like the wind or the air. We all just have to learn to deal with it by hedging in a truly effective ways.
RC
"Volatile oil price good or bad?"
Chaos Theory says that there is a region of instability between one stable state and another.
The climate will become volitile due to CO2.
When a stock market collapses there is a period of instability.
I see Volatility as a symptom of change to another state.
I disagree. I see volatility as an advantage to short-term traders and speculators, therefore it will be induced by every means possibly by them. I'd guess we're only seing the beginning of their experiments with methods to induce it everywhere we turn. Long-term price stability is unprofitable for those who gain by making bets.
This must be the statement of the year.
Last time I checked the consumer group referred to is the largest.
What about Prof Hamilton's Study?
Supply/Demand, market inelasticity and some speculation?
Causes and Consequences of the Oil Shock of 2007–08 by Prof Hamilton