WHY OIL WILL FALL

I’m not going to write about how some analysts have predicted that the US is headed for depression, because to me that is a complete farce. I have to admit, sometimes they’re very convincing. In fact, I’d be a believer by now if it weren’t for one simple fact; I’ve read the same gloomy predictions by the same people over the past fifteen years.

In short, don’t you worry, the economy will be fine in the end; no depression is coming but the road will be bumpy.

The price of Oil is ridiculous. Imagine I told you in the summer of 2007 that we were going to see $150 per barrel in one year. You would have written me off as a quack, and for good reason. There is absolutely no reason why oil should be worth what it is today (fundamentally that is). Nothing has changed between this year and last regarding supply. In fact, there are more and more reserves being found this year than there were last. So maybe it’s demand? Not likely.

The speculators have taken the price of oil so high that it’s now creating an economic crisis. This has set up oil for an imminent drop in value.

Here’s why: