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Oil at $70 per barrel in the midst of a massive recession and demand reduction is an unmistakable sign.

If the natural gas price were in its historic relationship with the crude oil price I would agree totally.

But I suspect that a good part of the crude oil price's defiance of gravity may well be derived from financialisation of the oil market, and 'macro' scale modern market manipulation by producers propping up the market price with zero interest money borrowed from ETFs via financial oil leasing.

The copper market was manipulated in a very similar way by Sumitomo/Hamanaka for ten years with the connivance of investment banks, five years of which was after the whistle had been blown.

The glut of distillates at the moment may be a sign that a period of unstable equilibrium in the oil market is heading for a discontinuity.

On the other hand, you may be absolutely right.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Aug 22nd, 2010 at 05:06:52 PM EST

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