Crude Oil $130 and Beyond

Markets have a way of humbling even the most prescient prognosticator. That’s definitely been the case for oil this decade.

There have been perfectly good reasons why oil prices couldn’t break, let alone hold, every perceived milestone it’s hit and passed in recent years


One of the early bear arguments against oil was its potential to slow the US economy. Some expected every upward burst earlier this decade to sow the seeds of its own reversal by slowing the US economy.

As it turned out, oil’s strength had a wholly unexpected impact. In 2003, 2004, 2005, 2006 and again in 2007, interest rates spiked higher in the spring and summer months only to come down hard in the fall. Each time, the action was more volatile and dramatic.

Market Oracle