Phil Flynn: The Commodities Got It In All Directions

Crude oil bulls got slapped everywhere they looked as a rate hike in Europe, weak manufacturing data in the US and growing concerns about Ireland's debt problems slammed commodities across the board. Perhaps the Fed knew that things are not that rosy and they were right to print all of that money.

Now with inflation running wild in China, the market knows that the Chinese are going to have to tap on the breaks, striking a major blow to global oil demand expectations. Over the longer term this is another critical time in this oil market when the price failed to capitalize and follow through on a breakout to new highs. Just 5 days ago oil hit a new 2 year high bring out a chorus of $100 a barrel predictions that many said that we would see by the end of the year.

These calls seem to me to be the same predictions we heard in the beginning of the year as oil hit 8395, a post economic crisis at least until the Dubai crisis sent oil price hurling back down to below $70.00. Then a UAE 10 billion dollar rescue plan and all was well in the oil market. Oil surged and hit a new high of 8715 in May and the $100 a barrel predictions were heard quite loudly.

That was before the Greece debt crisis which brought oil back down to 6424. Then of course it was the EU to the rescue with a massive bailout package and oil recovered slowly back to the eighties before settling back into the low......Read the entire article.

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