Oil showing classic ingredients of an asset bubble?

Question

In short they say the price of oil is being artificially manipulated by speculators to drive up the market and use peoples fear of running out of oil, turning that into pocketing huge profits...

Lehmann Brothers is already warning their investors to stay clear or risk being caught in another bubble bust...

http://www.bi-me.com/main.php?id=20916&t=1&c=34&cg=4&mset=1011

So what do you think... is a bunch of greedy people driving up the cost just to make more huge profits? or do we follow the liine and believe the price hike is due to us running out of oil?

Answer 1

i think they are money hungry but there is something there. what is the truth is any ones guess really. i can be because people were leaning towards alternative fuel, or demand has gone up because china and India. the oil is running out

its really bad that's its going up so fast and i feel sorry for all those minimum payed family's out there but its about time we move onto something that's more abundant. a fuel we can get that doesn't force us to make friends with people we do not like and less damaging to the environment.

get are minds moving forward to new inventions and stop relying on old technology

cheers

Answer 2

I agree somewhat. A lot of people buying oil and holding it a month or so adds to demand. But unlike stocks or housing, oil is an asset that gets used up. So it should be less prone to major bubbles.

Answer 3

you bet ye, but this bubble is far from bursting.