If Isreal attacks Iran the price of oil will spike $30.00 a barrel If Iran close the straights of Hormuz maybe $50.00 per barrel It could happen anytime and they wont want to be caught with their pants down. Betting against oil right now is a fools game.
Oil is US Dollar denominated. As the US bond presses roll the price of oil increases. Currency deflation, asset inflation. Is there any roll back of that equation. Obama still has between 300 and 400 billion in stimulus money to spend in the next 11 months. Plus 60% of government programs are on auto pilot spending increases. Add another 20% to the currency supply by this time next year? 120 oil? Don't forget the FED(us dollars) is bailing out EU? The FED doesn't need government approval to issue it's own debt, it is a private offshore company, with the power to write checks for any amount of bonds it wants to buy from any government anytime, any place. Which is what it is doing right now with the EU. The buys in US Dollars. Currency deflation, asset inflation.