Oil Will Be Back

Hot or Not / Editor / 12 November 2008 / Leave a comment

VERY soon the oil in your car's engine will be worth more than the car. And this is not to say that the oil prices are going up faster than a Spanish housing estate.

New car sales are down, the prices locked in a grim battle with the price of oil, which is falling.

Yesterday, US traded oil futures fell in value to...$59 a barrel.

Down and down the price of oil goes. The next milestone is $50 a barrel. Imagine that. Just in the summer, when we in the West uses less oil, a barrel of the same stuff would have set you back $147.

The move then was to sell equity and buy oil. Buy wheat. Buy metals. Buy commodities and weather the economic storm.

And then the dollar began making eyes at investors. The dollar rose in value.

And then... And then...

Let's just imagine the price of oil becomes so low that alternative fuels became less attractive, and more expensive. The price of oil is so cheap that investors start to buy into it.

Supply remains the same and demand goes up. And the price of a barrel of oil becomes higher or lower?

Think about it. Take your time...