OIL IS DOWN BELOW SIXTY DOLLARS. IT IS BACK TO ITS MORE NATURAL PRICE LEVEL. THE DEMAND HAS NOT DRAMATICALLY DECREASED, SO WHY IS IT LOWER.
THE MOST IMPORTANT REASON PERHAPS IS THE SPECULATORS ARE OUT OF THE OIL GAME. WITH THE COLLAPSE OF THE STOCK MARKET, THE FUNDS FOR COMMODITY SPECULATION HAS DRIED UP. SO WE ARE BACK TO A NATURAL STATE OF THE PRICE OF OIL. THE DEMAND FROM EMERGING MARKETS MOST LIKELY HAS NOT TAPERED ONE BIT. THE REASON GIVEN FOR OIL BUBBLE WAS DEMAND FROM THE EMERGING MARKETS, THIS WAS BOGUS ISSUE ALL ALONG. THE OIL BUBBLE HAS NOW BURST AND OIL SHOULD BE IN THIS RANGE AT LEAST FOR THE NEXT TWO YEARS. WHEN THE SPECULATORS COME BACK OIL PRICES WILL SPIKE AGAIN.
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