Yet it is not just Iran or Libya. Gold's recent historic rally has been in part a hedge against revolution. Dictators are amassing wealth and putting it in gold, a truly international currency. It is a currency that is hard to determine country of origin or its owner, a currency that can be moved or used to either keep you in power or enjoy your exile.
Oil is another currency that is worth more because of the shakiness of the global situation. While the market may feel better about Libya, there are other worries. Yemen generals are joining the opposition and Bahrain is being accused by human rights organizations for targeting doctors.
And then you have the demand prospects rising again. A huge rebound in the Japanese stock market should get oil traders salivating over the rebuilding phase of the operation in Japan. Obviously after a period of demand destruction, the tragedy in Japan will become very bullish for oil. Not only the hard numbers rebuilding Japan, but a reduction in nuclear power plants around the globe will eventually lead to millions of more barrels of oil consumed on a daily basis as well as coal and natural gas.
Natural gas stocks are soaring as the world more and more will look to gas to make up the difference. Natural gas is the cleanest and most proven alternative out there and its abundance of supply may feed a global economic energy renaissance. Still gas looked a bit oversold here in the US and oil looks like it is consolidating for another run higher.
Gasoline still looks bullish and the switch to summertime blends at the refineries are is underway. Cattle and hogs look very bullish, and high corn prices are causing ranchers to cull the herds as demand is rising in Japan because of concerns over radiated foods. In the meantime, high oil prices will drive even more corn into our gas tanks.
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.