September 09, 2005

Could oil prices be a bubble ready to burst?

Steve Forbes, the billionaire business publisher, predicted that the oil bubble will burst inside a year and the price will plunge... "I'll make a bold prediction. In 12 months you're going to see oil down to $35 to $40 a barrel," he said. "It is a huge bubble, I don't know what's going to pop it but eventually it will pop - you cannot go against supply and demand, you cannot go against the fundamentals forever."

Later in the story...

Mr Forbes said the whole concept of the strategic reserve was pushing prices higher. "The speculators know now that no matter what happens to the price of oil Uncle Sam is there buying almost every day," he said. "Stop the buying and in fact throw some of that oil on the open market, boy that would throw it in turmoil and send the price down."
Posted by jackhodgson at September 9, 2005 01:53 PM