The Oil and gas bubble

Jack Risko of charts oil and gas prices, showing a pattern that looks very much like a speculative bubble.

oil and gas prices

Notice in particular the freefall of natural gas prices (the red line), suggesting that oil prices may fall even further. Jack speculates that one motive for the Soviet invasion of Georgia is to threaten the major pipeline supplying Europe, thereby helping to sustain oil prices.

A major fall of oil prices to pre-run-up levels would severely cut the income of Russia, not to mention the oil states of the Gulf and Hugo Chavez.