I saw an article two days ago asking if the price of oil could go any higher. I had to read the article for only one reason: I couldn’t believe anyone was even asking if oil would keep rising, and I knew it had to be someone so wedded to chart dynamics that he couldn’t see the obvious fundamentals. So, I read it just to see if I was right. Sure enough, the “analyst” pointed out how oil had risen parabolically and how it looked like it was showing signs of a top.
I was surprised that it wasn’t clear to this fellow just by looking around at how the oil market has fundamentally changed that prices have barely begun to show the impacts of oil sanctions. Wait until the tank farms start getting low so that we start seeing actual shortages and are no longer just predicting shortages. Some of us who lived through the seventies, remember those standard two-block lines from the gas stations month after month. That is clearly where we are headed.