Despite high inventories oil keeps on rising

[pscot]

http://www.marketwatch.com/story/oils-moves-leave-traders-scratching-their-heads-2010-04-09

......prices for crude oil are trading near $86 per barrel on the New York Mercantile Exchange, up from around $49 a year ago -- and over 20% higher than the nearly $70 price at which they traded just six months ago.

.......'The price of oil seems to reflect an optimism in economic growth by traders that is not shared by Main Street or evident in the statistics. So "oil's recent jump above the $80 level is predicated more on a general belief in the overall global economic rebound than it is directly related to any supply/demand issues," said Neal Ryan, a managing partner at Ryan Oil & Gas Partners LLC.

....there are lots of good reasons why oil prices can continue their climb even from these lofty levels. Prices have climbed against a backdrop of a "dramatically improved" global economic outlook from a year ago, continued sustained growth in China, the inventory "restocking theme" in the U.S., the overall move toward risk trades, and the fairly low inventories of finished gasoline, said McNichols.

.....Patrick Kerr, managing director at Amerifutures Commodities & Options, said the oil market's also experienced "documented evidence of substantial depleting " at the world's major oil fields, rising tension in key oil-producing regions such as the Middle East and Venezuela, a lack of substantial alternatives and the diversification out of fiat currencies into hard assets.

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[DJ13]

1. Here comes the constant stream of excuses to justify the speculation

We've seen this movie before.

[pscot]

3. Sure, there's speculation

but you can't keep a kite in the air just by blowing at it

[DJ13]

4. You can keep up long enough to make serious money

That spike to $148 2 years ago wasnt based on reality.

[pscot]

6. That was more like hysteria

But all that different from taking out a second mortgage to buy an "investment" house, which people certainly were doing not too long ago.

[notadmblnd]

2. Yeah, sure, there's lots of good reasons.. but #1 is greed.

[Andy823]

7. Bingo!

They always come up with a million excuses, but it all boils down to GREED! They know they can get the prices up, they know congress never does a damn thing to stop them, and they know the american people "have" to have gas and diesel to drive their vehicles. If congress would get on the ball and start passing legislation to stop this from happening, we could control this GREED, but they won't do it! They make lots of promises and noise, but nothing ever materializes!

[Statistical]

9. Like what? Given that we buy oil from open market.

What should Congress do to "stop" high oil prices?

[cutlassmama]

5. they gotta squeeze that last dime before solar and wind hit

[snot]

8. Oil is also a hedge against inflation.

[Statistical]

10. "documented evidence of substantial depleting "

That is a nice way of saying peak oil.

The trend is unclear because we are close to or at the peak. The trends looking back in hindsight are always clear.

If you think oil is expensive today just wait 2-3 years. $150 oil easy.

If you think this is all speculators you honestly don't want to see DOE estimate for price of oil in 2020 or 2030.