Oil steadied near a record above $110 on Thursday, as investors weighed the dollar's weakness against bloated U.S. crude stocks."The price of oil is defying fundamentals" is another way of saying "My preconceived notions as to the way things operate continue to be proven wrong".
U.S. crude for April delivery fell 31 cents to $109.61 a barrel by 3:03 a.m. EDT, hovering below the all-time peak of $110.20 hit on Wednesday, the sixth straight record high.
London Brent crude fell 49 cents to $105.78, off the record $106.45.
"We're looking at the U.S. dollar, we're looking at speculation, we're looking at geopolitical. Those three things tying together are defying fundamentals," said Peter McGuire, managing director of Commodity Warrants Australia.
McGuire, like so many in the oil market, are completely ignorant of Peak Oil and the limitations it places on oil production. These people, who control billions of dollars and who control the market for oil, have no idea of what is going on.
The market is a powerful force when it has reliable and correct sources of information. When it acts are based upon ignorance, it can be terribly destructive.
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