[NoWorries]

5 August 2008, oil near $118:

$this->bbcode_second_pass_quote('', 'T')he pullback is double the size of crude's recent slide. That has fed speculation on Wall Street that a large hedge fund or something like it may be near collapse and has dumped a vast amount of natural gas contracts to free up cash. Last month, SemGroup LP, based in Tulsa, Okla., folded after losing $2.4 billion in bad bets on oil futures. SemGroup's collapse came amid a massive sell off in the oil market.

"Anytime you get that kind of violent price action in a short amount of time, it reeks of someone big being in trouble," Schork said.

[PenultimateManStanding]

Hasn't it been Peak Oil Gospel all along that large price spikes would cause trouble and financial panic that would lead to temporary large price falls, then as the pieces get picked up we run into even lesser supplies, so forth, repeat and rinse?

[dinopello]

$this->bbcode_second_pass_quote('PenultimateManStanding', 'H')asn't it been Peak Oil Gospel all along that large price spikes would cause trouble and financial panic that would lead to temporary large price falls, then as the pieces get picked up we run into even lesser supplies, so forth, repeat and rinse?

[mattduke]

That dynamic was described in "The Oil Factor" book.