Phil Flynn: The Steroid Problem

…I mean look at what this market has done over the last month and a half. After soaring to over $100 a barrel, this market broke to near 85, then after a little recovery slammed back down to 86 in a wave of economic pessimism. Then low and behold in just a few short trading sessions oil rallied close to 9 dollars a barrel. That kind of a move used to take years and now it is happening in days. I mean come on! That is more amazing than anything Roger Clemens has ever done. A major shift in market psychology in an instant that puts the bulls in control. Maybe the funds are juicing or maybe it


…The larger issue of course is the big picture peak oil stuff. Does a recession really matter if we are running out of oil? With all the bullish fundamentals that have driven oil for the last 5 years we only added roughly 10 dollars to the highs for oil a year. That was in the backdrop of a growing and expanding economy. Now we add 30 into a slowing economy! The only thing that can explain that is either we are seeing the peak oil production and the sudden realization by the masses that we are running out of oil or more likely bulls on steroids! Or maybe just maybe this is a last desperate to take out $100 a barrel before we crash into the sixties!

Alaron