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Driving around town this morning I heard Rush Limbaugh talking about the bubble in crude oil prices. He referred to the collapse of previous bubbles (gold in the 70’s, the NASDAQ bubble and the Japan Nikkei average). His point was when oil started falling, it would fall a long way. I’m simply not on the oil bubble bandwagon. I don’t see it falling precipitiously with demand rising all around the world.
That said, the warning signs of a near term top are all around. Everywhere I go people are talking about the price of gas, and CNBC has the phrase “America’s Oil Crisis”, or something like that in the middle position of the rolling ticker at the top of the screen. A pullback under $100 certainly wouldn’t surprise me, perhaps even cracking to $80. Below that, color me surprised.
