There’s a great comment from Edward Morse, chief energy economist at Lehman Brothers today.

“My basic message to those who say that prices have to go up forever is that the oil markets have been cyclical for 140 years. Why should that have stopped?”

Eddie brings some sound historical perspective to today’s market frenzy. Oil is the new tech stocks (late 90’s), real estate (early 2000’s) and Beanie Babies (late 90’s).  Just the latest thing to be driven up by manic speculation. If you are wondering how you might take advantage of a bursting oil bubble, see our post Using Proshares Energy ETF to Short Oil.