We oil speculators must rejoice today, since prices rebounded after a rather steep fall over the last few days.
Our friends at Goldman Sachs – those fellows who tried to sell the notion a few weeks ago that natural gas prices should triple this winter, despite unprecedented inventories and sagging demand – get some of the credit. Amazingly, the GS folks think that oil is headed to between $85 and $90. What were the odds?
I think the problem we speculators face is where we speculate on oil: At the gas pump, where the speculation is how much more we’re going to pay next week because of the real speculators.