Sep. crude is printing $64.25 - 64.50 bl and gas is printing
over $9.00 mcf. On longer term charts these are spike breakouts
that signify an erosion of market discipline. There should be a
ton of overhead in each of these markets, and if demand can
continue to chew through it, the ball game will change to the
rankest of speculation and dramatically increased volatility.
From my perspective, we have moved beyond the pale of reason
and are watching these two markets move into fantasyland on a
speculative binge. As my Irish mom used to say, "The devil shall
take the hindmost."
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