Oil’s Attempted Rally-Back Friday Ended in Its Biggest One-Day Loss in 20 Years! – Wall Street Underground

By Nick Guarino | August 24, 2008

After seeing such a staggering rally like we have had in oil these past few years, it’s easy to understand why so many people are gun–shy. All I can say is, get over it. The truth about the bank and the mega-fund manipulations we have told you about for years is now slowly coming out. The demand destruction is a sight to behold. When you add to that the fact that enormous new production is coming on stream, you can see why I think oil at $10.00 a barrel is a done deal.

Look, it’s becoming common knowledge that a few mega-funds and New York investment banks have been manipulating not only oil but all the commodities. But you need to understand that no one is mightier than a market. Price manipulations never last. The laws of economics and of supply and demand ALWAYS reassert themselves with staggering consequences for market manipulators AND with staggering profits for those who positioned correctly.

In my opinion, the back of the oil market manipulation has already been broken. That why I believe this could end up being our most profitable trade ever. Oil over $100 a barrel is ridiculous. The truth is that the public won’t pay that price for long. As always happens, The market manipulators have sown the seeds of their own destruction in this the greatest market manipulation ever. The cartels will live to deeply regret being seduced by Wall Street’s ability to temporarily push the price of oil into the stratosphere.

It’s great while it lasts – oil company profits are setting new records – but it can’t last. I repeat to you that the vast majority of ARAB oil will stay in the ground, not needed or wanted. They pushed things too far. They used to be savvier. The Arabs always wanted to keep the price of oil in a narrow “band” of around $24 a barrel because they understood that, if they raised prices too high, demand would be cut and the incentive to produce alternative fuels would be too great. But greed got the better of them. Now nuclear is back. Bio fuels using switch (weeds) grass is coming. Then there are Liquid Natural Gas, oil tar and oil sands along with coal gasification, wind and solar – they’ll all take a huge piece of the energy pie. Silly boys. Their greed has destroyed them. This means the greatest trading opportunity in history is presenting itself here.

I believe this is just the start of an historic oil bust – and you could potentially make a king’s ransom. And with the new oil ETFs I’ve told you about, you could trade it with no muss and no fuss.

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