Because of the world-wide economic downturn Oil Inventories are at historic highs.
Also a fact-
Prices keep rising.
Now when there is a disconnect of this type between supply and demand even the most Freshwater of Economists start looking at the actions of the market and market actors for a rational explanation of this mis-allocation of economic resources.
In this particular case we don’t have too far to look.
The system is flooded with money. The intention is that it be invested in productive activity with modest rates of return on investment. The Banksters on the other hand are invested in speculative activities that have aberrational and unsustainable rates of return. Because of these expectations and the amount of “liquidity” we are seeing commodity bubbles as money rushes from this to that flavor of the week seeking economically unjustifiable “profits”. This can’t last and it hasn’t.
The .01% are going to have to cash out their losings at some point and realize their hair has been cut, because they have all the money. You can’t get blood from a turnip.
Rising Oil prices will decline sometime soon. Unfortunately probably not before they depress the Main Street Economy the rest of us use.
Don’t Blame Iran