USO

U.S. crude for February delivery settled up 8 cents at $79.36 a barrel, compared with a close of $44.60 on December 31, 2008.   However oil prices are still almost half the all-time high of $147.27 hit in July 2008.  Yet the United States Oil Fund LP (ETF) (NYSE:USO) closed up 18% in 2009 -- Ridiculous.

So, oil is on the rise and it has jumping for joy, wanting to buy iPath S&P GSCI Crude Oil Total Return (NYSE:OIL) or ProShares Ultra DJ-UBS Crude Oil(ETF) (NYSE:UCO) or United States Oil Fund LP (ETF) (NYSE:USO).  Well, it may worthwhile considering this, the oil market may be a big scam.  Well, that is at least what Phillip Davis seems to indicate, equating it to the likes of Bernie Madoff (well, Bernie Madoff x 50).

Oil prices may rise above $100 a barrel by early 2011, as global demand rises and producers fail to boost supply, Bernstein Research forecast on Monday.  Investors are placing bets on the United States Oil Fund LP (ETF) (NYSE:USO) which is down 60% YTD.

There are striking similarities between the stock charts of the US ETF for natural gas (NYSE:UNG) now and where the stock chart for the US ETF for oil (NYSE:USO) was in December-February. 

Traders waiting for oil (NYSE:USO), (NYSE:USL) to rise in price are storing it offshore in tankers, get ready to cash in.

Yesterday Dow Chemical (NYSE:DOW) reported and there were two numbersrelated that have thus far, been ignored as to their greater effect aside from Dow. Some more thoughts on the economy and where we may be headed.

What does it all mean? Simple, Mexican production peaked in 2004.

When demand resumes, prices will spike..

Those who think it is not happening are in denial...