fuel for thought
A blogger named Steve Austin (of oilprice.net) wrote: "It took only 5 months for the price of oil to plummet from $150 to under $40 in the second part of the year. Meanwhile oil consumption did not even decrease 10%." If he has his facts straight, then the oil price will be back with a mighty vengeance. The low price is necessarily negatively affecting production capacity. Supply will keep going down at these low price levels. He also said that oil is now being sold below the cost of production. That adds another dimension to the bad news for oil consumers. This means that many of the relatively small players will close down and the ones that survive will have less competition. Less competition puts less downward pressure on the price. Let's enjoy this happy breather while we can. :) Hopefully by the time oil starts to surge we'll have more energy options at our disposal. PSEi As energy prices affect the outlook for stock prices, we should be mindful that the current...