Disclaimer

Opinions and observations expressed on this blog reflect the authors' individual experiences and should not be construed to be financial advice. None of the members of this blog are licensed financial advisors. Please consult your own licensed financial advisor if you wish to act on any recommendations here.

Monday, August 8, 2011

The Staggering Collapse of Oil

First, the picture:


Stocks aren't the only thing heading straight down these days. If you needed any proof that inflation is not a threat, how does this chart suit you? Virtually all of the inflation that we have seen lately has come from high fuel prices. Well, those days are over.

This situation is not likely to change soon, either. Well, the perpendicular drop should stop, but a rebound, at least a sharp one, is not probably. A moribund economy will see to that. Oil inventories are also quite robust and demand isn't exactly whittling them down. Every financial crisis does have its silver linings. Falling interest rates and energy prices are among them.

No comments:

Post a Comment