Beware Of The Muppets In The Oil Market
17 May 2012 34 Comments
The following chart shows the West Texas Intermediate (WTI) crude oil spot price in US$ (source: US Energy Information Administration).
Obviously, there was a speculative bubble from early 2007 to mid 2008 which then collapsed during the second half of 2008. In a series of articles, Chris Cook claims that the crude oil price has been in another bubble since the end of 2009 and that this bubble is just beginning to pop. The present article is an attempt at understanding the mechanics underlying Chris Cook’s ideas.
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