Oil as a financial or physical asset?

The recent news of Deutche Bank shutting down their their Oil Fund elucidates the interplay between the financial and physical.

Here's an interesting article from Philip Verleger in late 2007 on the interplay of oil as both a physical asset used and consumed by the entire world as well as a financial asset. His prediction of $90 oil by 2010 was not extreme enough price or time wise!