Peak Oil Passnotes: Why Is Oil at $60?
When a commodity or a stock moves fast we tend to get very excited. We hope to discover whether or not it has made some kind of quantum leap or is just part of a long term trend. So what the heck is happening to crude oil? Is this a slip? A correction? Or gigantic profit taking? Or none of the above?
Since we last wrote this column oil has continued its most excellent nosedive, actually breaching the $60 at $59.80 intraday this week. Just six weeks ago it was busting out at $78 and everyone – this commentator included – thought it was only a matter of time before $80 oil arrived.
September 27, 2006