Do recently rising oil prices signal a resurgence of economic growth?

In the WSJ Blog Environmental Capital, Russell Gold writes of

a growing belief that the economy could be regaining its footing and oil prices will climb to the price that OPEC is willing and able to defend.... "[T]here would be no reason why the current price rally could not extend to $75 within a fairly rapid timeframe," [Paul] Horsnell wrote in his weekly overview of oil-market conditions. Believers in oil-market fundamentals are left scratching their heads. Exxon Mobil Corp. chairman and chief executive Rex Tillerson told reporters earlier this week that he couldn't see any reasons involving supply and demand to push up oil prices. He attributed the recent oil rally to fluctuations in the U.S. dollar and people trying to get in front of a perceived economic recovery.

The first point I'd emphasize about this hypothesis

Alex’s Notes: Do not take this as “everyone” is buying gold. Very few are. the fact is, the gold market is so small, that 1% of what is in equities and other paper instruments would cause the price to absolutely skyrocket to clear the market.

One thing I have noticed over my time being involved in the gold industry: Anytime that it seems the gold price is about to seriously break out, there is an announcement of an intention to sell IMF gold. The funny thing is, that gold will never see the streets, as it will instantly get bought up by a Central Bank.

It usually does however, have the effect of temporarily pushing the price down. Oh how easily the sheople are duped.

*****

By Sarah Marsh and Jan Harvey

VIENNA/LONDON (Reuters) - In the heart of Vienna in a Biedermeier building commissioned by Emperor Franz I,

Alex’s Notes: Do not take this as “everyone” is buying gold. Very few are. the fact is, the gold market is so small, that 1% of what is in equities and other paper instruments would cause the price to absolutely skyrocket to clear the market.

One thing I have noticed over my time being involved in the gold industry: Anytime that it seems the gold price is about to seriously break out, there is an announcement of an intention to sell IMF gold. The funny thing is, that gold will never see the streets, as it will instantly get bought up by a Central Bank.

It usually does however, have the effect of temporarily pushing the price down. Oh how easily the sheople are duped.

*****

By Sarah Marsh and Jan Harvey

VIENNA/LONDON (Reuters) - In the heart of Vienna in a Biedermeier building commissioned by Emperor Franz I,

Here's how it was reported, for example, in the Wall Street Journal:

Reaction to the Wall Street bailout and frenzied last-minute trading in the oil market sent crude prices soaring by more than $16 a barrel, the biggest one-day jump ever.

The late-day spike, which shoved oil up 16% to $120.92 a barrel on the New York Mercantile Exchange, offered an illustration of Wall Street's hard-to-predict moves amid broad market turmoil.

And here's what really happened.

The most striking thing about yesterday's oil prices was the disparity between different futures contracts. The October contract, which expired yesterday, did indeed settle at $120.92, up more than $16. But oil for delivery in November closed at $109.27, an increase of only $6.62, and longer-forward contracts saw an even more modest increase. Unquestionably what was going on was a short squeeze, in which traders who had sold the October contract short were scrambling