Oil boom finally over? Kaboom?
June 1, 2008
Whew, this week, it seemed for a second that the crude oil bubble was finally going to drop, due to a recent falling to $125/barrel. Just last week, it was soaring above $135 a barrel, an all-time record. This drop in oil has caused a short economic bull surge. Stocks are starting to pick-up, but the question comes back, is this drop going to STAY? I heard that in these few months, the oil prices were fluctuating due to speculative investors, and now, they have all turned negative. However, Goldman Sachs thinks otherwise, they predicted prices to go above $150 due to a shortage of supplies, and rising external demands eg, China and India.
What does this all mean for the average consumer? Well, most likely, you are going to be cutting corners. Saving as much as you can here, there, everywhere. Unless, of course, you have deep pockets, like oil-well deep. Consumer spending on a whole is going to drop, and then we are all going to go into recession. And oil prices are going to go higher, and we are going to suffer even more. For the time being, oil is going to drop, and investors are all shorting, but wait until a crisis comes, and the word “cover” rings on every trading floor, then its going to bull fast, real fast.
As for the recession, many high profile investors think it is going to come hard, and stay for a very long time.
For the time being check out this great video on the ideas for the future and what fortunes or disasters it may bring.
Leave a Reply