Oil Top! A Long Time Forming
Where is oil going? I am bearish big time but I am afraid the answer is a bit more complicated than just sell, sell, sell. Yes I am bearish but not before we work off some of our latent bullishness. To predict the fate of energy prices this coming year you really have to get a brief overview of what drove energy prices last year. Oil was not driven so much by supply or demand but driven by the largest global economic intervention in the history of the globe. Global central banks around the world led by Fed Chairman Ben Bernanke went to extreme measures to bring the global economy back from the brink of what was the greatest global economic crisis since the Great Depression. Along with that he created a bull market in commodities. Now oil is in the process of putting in a long term complex top. The problem is that it may take many months for it to complete.
By Phil Flynn
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