1. Fed has chosen intentional inflation as its policy to deal with the current dilemma.
USD depreciates is reflected as oil price increase.
2. Demand from India/China is strong and solid. And India and China has no intention to eliminate domestic subsidies AT ALL to follow global price. If China/India liberate their market, then America win in this financial war.
Demand from I-C is growing fast and demand from transportation needs in developed nation is relatively inelastic.
Supply side: Russia peaks, and Saudi lies. Most Latin ones peak (Brazil does not) and lie.
3. The current oil price we see in the media is futures price, NOT spot price that large oil companies really buy and sell oils.
Put in another way--that's speculation price greatly impacted by inflow of speculation funds and panic news.
We all know Wall Street is never short on scandals and hot money.
4. Any bullshit news from mid-east can be killer news for shorts.
In sum, if you want to enjoy nice sleep, do not short oil.
