The difficulty with the bubble moniker is determining exactly how much of the price is being driven by purely speculative factors. With Crude, a variety of forces are driving prices: A combination of both fundamentals (increasing demand, constrained supply, pipeline problems), technicals (Trend, money flow, etc.), along with the geopolitics of two Middle East wars -- as well as some speculation.
Additionally, we have seen the general perception of commodities shift, where they are now seen as a more legitimate asset class for portfolio managers, along with Equities, Fixed Income, REITs, cash, etc. than it has been previously.
Even If I disagree with the bubble thesis, I love any report festooned with lovely charts, and this one is no different:
An oil bubble to rival the internet boom (PDF)
FactSet, 3 May 2008
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"...as well as some speculation."
Some speculation? Ya think?
Posted by: John Navin | May 9, 2008 11:13:52 AM
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