The one thing you see in the energy section of any news publication is the price of oil. Most of the time, it will give some doom-and-gloom reason that has little to do with the price of oil, or it will be some analysts making claims that oil will be double what it is today, or that it will drop 20%-30%. The most fascinating part of these prognostications is that they rarely give any real reason. A great example is a quote from Peter Flynn in an interview with Bloomberg, where he gives his reason that oil prices are going to drop:
We\’ve crossed the Rubicon when we crossed that $100-a-barrel threshold; now the fundamentals are heavy, and people are starting to try to protect their oil position on the downside.
It sounds as if he\’s saying is oil prices are going to drop because people are afraid they\’ll drop, and that the sacred number of $100 is the tell-all sign. So the reason oil prices will drop has no correlation with what\’s going on in at the oil fields or at the gas pump — just \”heavy fundamentals.\” Does anyone understand what \”heavy\” fundamentals even means?
via 1 Real Threat That Could Kill America’s Oil Boom.
Categories: Energy, Transportation
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