Tuesday, July 22, 2008
A Funny Thing Happened on July 15th
Bush removed the executive order banning offshore drilling. Look at how investors (Obama calls them speculators) have reacted. They now are starting to believe there is risk in owning oil futures. Oil is down almost 15% and we can only imagine how much more this would drop is congress would follow suit. I know the left would argue that oil development in the future can't help prices now. But what they don't understand is that markets in general and oil specifically are based on politics, psychology, data, and emotions - as well as how much oil is coming out of the ground today or tomorrow.
I got the chart from NYMEX. And you can too right here.