With all resistance removed, sky is now the limit for oil

There have been many firsts in the Bush Administration-led United States. And now the administration can add another, but it may not be one they’d like to brag about. In the industrial, modern and now postmodern eras, oil has never cost more than it has in 2008. Oil has no more resistance above it, psychologically or technically: as they say in the trading pits, from here on, the sky’s the limit for oil.
Some are saying an oil bubble, as well as a more-general commodities bubble, is developing, following on the heels of the tech/dot-com and housing bubbles that preceded it, as institutions frantically pour hundreds of billions of dollars and euros into oil and other commodities, in the rush to secure returns not currently attainable from U.S. stocks. But don’t mention the term ‘oil bubble’ to independent energy trader Jim Dietz, who, not once, not twice, but three times lost “at least a Caribbean vacation” calculating that the price of oil would fall these past few weeks. It didn’t. Oil doesn’t fall, it seemingly simply corrects, and marches ahead. And Dietz is no longer an oil bear. Come to think of it, don’t mention the term ‘bear’ around Dietz for awhile, either.

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