One or two people wagged their fingers at me after oil broke first through $100 and then $90. They said, "Still think oil's gonna be $150 by Christmas." Well, the poll is still up on my website innit?
The crazy thing about what is happening now in the markets is this: everything is so crazy crazy seems normal. It's not. It used to take years, decades for oil to rise $5. Now it rises by five times that in an afternoon. You may say who cares (if you're really stupid). No civilisation has survived wiping out its resource-base.
These convulsions we're seeing in the stock market - if you follow them to source, you'll find one incontrovertible result. Energy is no longer cheap. We played economics games based on the myth of infinite growth, and then our resources - finite fossil fuels - started to run out. Reality has finally caught up with us.
Even so, this story isn't even a headline. That's how stupid human beings have become.
NEW YORK - Oil prices spiked more than $25 a barrel Monday — the biggest one-day price jump ever — as anxiety over the government's $700 billion bailout plan, a weak dollar and an expiring crude contract ignited a dramatic rally.
Still, the rally, which shattered crude's previous one-day price jump of $10.75, set June 6, showed the intensity of emotion in the market. The Nymex temporarily halted electronic crude oil trading after prices breached the $10 daily trading limit. Trading resumed seconds later after the daily limit was increased.
Crude has gained about $30 in a dramatic four-day rally that has at least temporarily halted oil's steep two-month slide below $100. At this rate, crude is within striking distance of its all-time record of $147.27, reached in July.
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