Oil back up

Speculators are re-entering the oil markets on the long side and how can you blame them? They've had some encouragement in the form of Opec cutting output. In addition, the perceived inflationary impact of the bailout (though it won't be inflationary at all--read my last several posts) will get the herd stampeding once again. Congress failed to act on reigning in speculation back in July and it will fail to do so now. Yesterday the Democrats caved in on their opposition to offshore drilling. All the "geniuses" have been telling us that once that happened, oil prices would plummet because the market will instantly start factoring in higher output down the road. That's a bunch of nonsense. Watch as oil moves back to $130. That is was Monday's high in the expiring, October Nymex contract. After $130 a combination of speculation and Opec control will force crude to above the record highs, and perhaps, eventually, to$200.