Watch closely: every time stock markets rally, energy prices rise. It is energy prices in the end, that kill the markets. Once upon a time these were dormant/stable. We are now very accountable to the use of these resources because we have reached a critical level in our consumption. The reaction to our demands will become proportionate more - will increase - over time, whatever theories you might hear about 'demand destruction', speculators etc.
The bottom line: too many consumers, too few (and continuously depleting) resources. Failure to address our consumption in fundamental ways means one result: higher prices.
What happens though is the state of flux further confuses and deludes the wishful thinkers amongst us who are hoping for a respite and a bottom. The result is that we are tempted to wish, to hope, but ultimately do nothing, when a great deal of difficult change is necessary.
I will write more on this topic later in the week.
SINGAPORE (AP) -- Oil prices bounced off a 17-month low Wednesday in Asia as a rally in stock markets around the world boosted investor confidence that the worst of a global economic slowdown and its impact on crude demand has been priced in.
Light, sweet crude for December delivery rose $1.91 to $64.64 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract overnight fell 49 cents to settle at $62.73, the lowest closing price since May 15, 2007.