Monday, May 12, 2008

The Oil Bubble. When Supply and Demand has no effect on price.

There is something fundamentally unstable about oils price when increasing supply and decreasing demand (growth) doesn't result in a cheaper price.

Side Bet: We will look back at May, 2008 and recognize that while Goldman Sach's analysts were calling for $200 oil, their traders were shorting/buying puts on oil futures.



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