Tuesday, June 21, 2005

High Oil is Bullish!

High Oil prices are a sign that the economy is healthy. All of the oil in the world that can be pumped is getting pumped right now. Eventually the high prices will create incentives to conserve and produce more capacity, which could reduce prices...but that is a long-term thing. There's only one thing that will bring Oil back into the low 40's or even lower in the near future (the next year or so). A recession. As long as there is economic growth in oil consuming countries (like ours), Oil's going to stay expensive. So when you see Oil futures surging that is a sign that the markets forsee a healthy economy. Be happy that it costs you 50 bucks to fill your tank. It's a good omen for the future!

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