Oil on the brink?

Question

Oil Futures are very volatility right now, it is down 9.5% since march, and most of that was in the past week or so, and just jumped $5.55. Is this the end of the commodities bubble? Are prices crashing?

Answer 1

For the long term, oil must continue to go up.  There is only so much of it, and more people on the planet every second.  The same argument applies to food commodities and land.

For the short term, I have no idea.  It's volatile precisely because people don't know what the next event will be.  So I'm not helpful, if you're looking to make money.

Oil cannot rise unchecked forever, though.  It will hit plateaus at the prices of its alternatives, whether that's natural gas, biofuels, or even electric cars and bikes.

Answer 2

I sure hope so.

Answer 3

Today's $5.55 jump had more to do with the dollar falling, which had more to do with the Euro rising because the European Central Bank kept their interest rate targets steady, but hinted that they may raise them soon.  Oil jumping by that much on non-oil-related news is a definite sign that some of the price of oil is speculative.

I think medium term (i.e. months) oil will shed some of its value.  Not all the way back down to where it was, but a little bit.  News is coming in that the high price is cutting into demand in the US and asia, which is indicating that demand is not quite as inelastic as people think.

The long term, one of two things happens:  Industrialized nations develop other major energy sources, or, as the above poster says, oil prices keep going up.

Answer 4

Take an economics AND a English class before you ask questions on a subject you know nothing about,troll!!

"Oil futures are very VOLATILE" right now,not volatility.

How DOES your own medicine taste??????