I don't think any one can really say what the optimal price of oil is. I think speculators do have much to do with the price rise but a lot is the dollar as well. There isn't much slack in the oil supply chain but I agree with the Saudis that the price is too high. The rise in oil corresponds to how much and how fast the fed cut interest rates to try and stop the damage from the real estate bubble bursting. If they start raising rates I think many people will pull money out of commodities and prices will come down. But, again this is just more speculation.

So what's everyone's opinions on when oil prices will start falling? Some of the people I've talked to think they'll start coming down around the fall when demand for air travel pulls back. The end of the Olympics were also mentioned as having an effect. I, for one, am hoping to heck that they start coming down ASAP. I'm all pruned from sitting in this Comair pool.

Probably once speculation cools off, people take money out of commodities will we see the prices start to recede.

Ron Insana of CNBC fame stated yesterday that his new private equity firm believes the recent run on all commodities is at its' end, and is positioning their clients respectively. He didn't say oil specifically, but he did include it when asked to define "all commodities"

Well I sure hope he's right....but oil just jumped back up to $145 today. Ugh... :mad: