I’ve been telling you that this oil bubble was about to break and we’d see some movement by midsummer. Well, guess what?
The Times Herald is repoting: [1]
Last week, the price of crude oil futures actually went down, and there were signs that the dollar was strengthening.
Additionally, the Commodity Futures Trading Commission announced that it is six months into an investigation of possible price manipulation in the oil futures market.
Though crude oil futures actually closed up 45 cents on Friday, overall, they were down almost $5 from the peak price of over $132, said Greg Laskoski, director of public and government relations for AAA Auto Club South, which tracks gas prices.
Crude oil closed at $127.80 Friday on the New York Mercantile Exchange.
“This is encouraging,” Laskoski said. “We believe it is encouraging because it is driven by strength gained by the dollar.”
From Thursday to Friday, the dollar gained against the euro.
Yeah, well currency certainly enters into this, but it’s not the whole show. I’ve been telling you why ths was going to happen for some time, now. Now, why’d I have to find this in a piddly little Georgia paper? Where’s the big fanfare in the usual suspects, like we saw when prices were going up?
(BBCT: McGehee [2])