Wednesday, February 18, 2009
Sometimes posts are written for you. I have been maintaining a spreadsheet of weekly world oil prices for the purposes of posting on the behaviour of oil prices in the future and the effects on the economy. Then today, Phil Hart at The Oil Drum beat me to it.
In short, the events of today are laying the groundwork for drastic increases in oil price for the near future. If you care about my recommendations, prepare for sharp swings in price as the price responds to demand side signals. These will come about at even lower levels of economic activity as the supply side becomes constrained.
As mentioned in the first comment, the following youtube does a great job of summarizing this:Recommend this Post