or we transition at a medium paced to having diversified energy sources to run our societies.

there is that possibility; however, given what i' ve seen in how we handled katrina, the financial markets, and our two wars, i don't hold out much hope that anyone is going to be able to manage this crisis.

Myself, I would like to see more $50 or $70 oil predictions ... and I would also like to stand in line to hurl the eggs at their faces afterward

The less we use the more China will use. China and the other emerging economies set the price of oil now, not the US.

This mindset is why we are going into a wall.

explain?

I'll give a go:

It's a small sample of the inertia that exists at so many levels.

So I want to hear more about this.

Believing that oil prices are subject to the same ebbs and flows as everything else that is traded somehow makes me a contributor to Peak Oil denial?

I suspect that the premise for the conclusion is a population ratio.

I read that a lot of the oil price going down had to do with the airlines cutting flights. Some of the demand destruction we're seeing is a clear erosion of "the world as we know it". It's just that we're still in such an early stage that it hasn't quite sunk in. I mean, we will cut the fat, but we will also be seeing a lot of commentary in the news that begins with the title phrase "the end of cheap---".

Won't demand destruction in its varied forms rise from the grave all the way down the price decline to give support at some level well above what conventional models would indicate as a support level?

I'm totally with SPG on this... it doesnt matter if we are talking about corn, GM, Cuban cigars, whatever. Everything is bound by the same rules of supply and demand. Everything on a stock market is subject to emotional trading, technical trading, idiots, smart people, millions of traders....

Think about that for a minute, Millions of people set the prices of oil....

If the majority of them think that it would be smart to get out right now because the media is telling them that the price is overpriced, or that the US isnt going to war with Iran, or that banks are cashing in their long positions to free up capital. Then we are going to see the idiots jump out in masses.

But it is just a correction, it will continue its trend, I think SPG has it about right.

And I would bet that most traders are looking at the situation in the same way that SPG is. They probably look at the chart and go "holly shit that is a big spike, look at where the 200 moving average is compared to the price, I better set a tight stop loss"

I believe what we are seeing is a lot of emotion in the market. I wouldnt be surprised if oil shot back up to $145 tomorrow, then fell heavily again. I dont think it will, but there is a lot of emotion, and therefore it will be very volatile.

I'm sure in a month or two it will be moving above $145.

$100, $100, $100

Do I hear $80, $80 going twice, Sold for 80.

I think if I still was invested in oil, I would get out before the weekend.

Smart investors know when to cut their losses.

are you sure?
I don't set the price of oil, and no one I know either.
Maybe there are a lot of small investors, but the big part that's not
you and me, I guess.

I really think (however I don't know) that there are BIG forces in the markets. Huge banks, or the al Saud family or who ever wants to manipulate the market, make money.

Maybe someone big sized decided that te price of oil is harmful for the US economy, or maybe harmful for the Chinese economy and decided to so something about it.

Re: Oil Prices Dropping

With the US placing diplomats in Iran oil should drop. No more saber rattling, the US yelled “Uncle!” with the missile launches and Iran showed how they could us oil as a weapon. We aren’t out of the woods yes as far as prices go but at least there’s some dialog between the US and Iran, that is HUGE.