Oil and the economy

October 16th, 2008 11:26 am · 0 comments

Dow down 277 as of this writing. Which means as of this moment, we’re below where we were before Monday’s huge surge upward.

Oil down under $68 though - which is of course connected. I’ve heard from a lot of people in recent weeks that now is really the time to buy oil - that however much demand drops as a result of the financial crisis, the long-term trend is only going to be upward as the Chinese and India seeks to fuel additional growth - and of course, they’re not making any more oil. When the economic crisis ultimately subsides, as all economic crises do, we’re back to square one - where demand is likely to outstrip supply. But who knows. Oil back down at $68 means less demand for alternate transportation, less demand for fuel-efficient vehicles, less use of public transportation, and less pollution (a byproduct of all the above). It may reignite demand; or demand could continue to decline specifically because of all the other economic factors. Dunno if $68 is the time to buy. $50 definitely would be, tho.

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  0 comments  Tags: Economy · Oil

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