Yeah, that was fun to watch this morning... I keep a chart of USO on my monitor and out of the blue that thing just started dumping. That entire move happened in a couple of minutes. I haven't seen something like that in oil that wasn't news driven in a long time.
lol there won't be any strike. Dont you guys learn from history? Saddam hussain wanted everyone to think he had nuclear weapons so iran wouldnt invade him. He totally made it up. Now you have iran pretending to have weapons so the us won't invade them. Do you really think iran wants a war with the US? What are you smoking? This is the last thing they want, especially when the next president will be much less hawkish than bush. All iran has to do is wait 6 months and they wont need to worry about the us.
I think global demand is more flexible than that... it's going to cause a global recession... it's gonna hurt... but we'll find a way around it. I also don't think Iran could hold the strait closed for long. The US, and rest of the military powers that don't end in Ussia, would be all over that.
Well, if oil jumps 25% overnight, we'll be right back to where we were 3 weeks ago...
If nothing else, the oil pullback is creating margin for error... and if something were to come up with the Strait of Hormuz... I highly doubt the rest of the commodity picture will suddenly turn bullish, likely more bearish.
Boone Pickens may be laughing all the way to the bank, though... I'd be a buyer of NG.