ntalwar
Rock n' Roll Doggie Band-aid
I correctly sussed the oil price increase of earlier this year as a BUBBLE
It wasn't only oil prices that were a bubble - it was the entire economy that was a (credit-fueled) bubble. Oil demand dropped by a faster rate than was predicted by the IEA, as a result of credit contraction and high oil prices themselves. Continued deflation will be a bad sign for the economy. A lot of the current oil fields have a break even point of 60-70 a barrel, but new oil projects being planned have a higher break even point (over $100 a barrel). So prices can't stay low for too long, otherwise importers won't get the new oil.