Is $130 oil a bubble? (the article claims no tech shortage!)

[Deja Q]

http://money.cnn.com/2008/05/23/news/economy/oil_bubble/index.htm

Some say no. They say unlike the tech and real estate bubbles, there's no overabundance of supply. Others say these high prices are not sustainable.

Double negative; the article is basically saying there IS an overabundance of supply. So how come we have companies saying there are no qualified workers (the supply)?

[Aloha Spirit]

1. Yes. Commodities trading >> bubble

[Speck Tater]

2. Oil Bubble = wishful thinking

for those who are not prepared to accept the fact that demand is growing faster than supply. There ARE oil shortages, just not in the US yet, because we are rich enough to buy what little supply there is. Meanwhile several other small, poor nations can't get gas or diesel at what they are able to pay.

There is NO overabundance. There is an actual oil shortage. It's just that rich Americans don't see it. Yet. By October or November of this year we rich Americans will start seeing gas stations with "out of gas" signs on them too.

Cheap oil is never coming back. The airlines are going away. The world is changing in some major ways that most people are still in denial about. Life after petroleum is going to be very different than anything we are used to./

[liberal N proud]

3. The price of oil has been driven strictly by the commodities market

Speculators playing the futures market.
As long as they keep playing it the price will keep it's upward spiral

[tama]

4. The article says as quoted

"Some say there's no overabundance of supply" Meaning supply of oil, the actual stuff that could be pumped from ground - nothing to do with supply qualified workers. What the "some" implie is that oil is being pumped as much is physically possible and that it is not physically possible to pump any more than that.

It's not a bubble, something that could be burst with more supply than demand. It's the peak production level and people eat oil.