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Commentaries — August 20, 2004

Is Crude Oil In A New Bubble Or A New Reality? The cash market price of West Texas Intermediate, the benchmark for the NYMEX contract, has risen more than 45% since the start of the year. This has led many to nominate the crude oil market for bubbledom. We disagree. While crude oil can be… Continue reading Untitled

Open Is Crude Oil In A New Bubble Or A New Reality?
The cash market price of West Texas Intermediate, the benchmark for the NYMEX contract, has risen more than 45% since the start of the year. This has led many to nominate the crude oil market for bubbledom. We disagree. While crude oil can be purchased and held in the hopes of making speculative returns, its economics are dominated by actual supply/demand balances.