In reply, I said it is a speculator's game. There is a lot of money investing and confidence is high. The price of crude oil is not based on the fundamentals (high demand or low supply).
Just look at the figures: increase of 1.9M barrels (or 5M according to API), increase of gasoline-- all when the analysts were predicting declines. What happened? Crude oil increased! It is going up much higher until investor sentiment changes.
If there is a supply disruption, even if insignificant, the speculators will jump on this as a reason to increase the price per barrel even higher. And if the USD weakens, oil will increase as well.
Happy Thanksgiving from 8DIM Space Monkey!
In reply to:
you said: "Basically, oil demand is irrelevant."
and you said: "Get ready for $150 if there are any issues with supply"
Impeccable logic! great observations! so what dimension of space monkeys are you?