Is the oil bubble about to burst?

Is the oil bubble about to burst?

Click through to the infographic and see the data that lends some to think that even as we see record prices for a barrel of oil, we may be about to see prices drop again soon. (We have such short memories incidentally. It wasn’t long ago that gas was $3.49 per gallon and then dropped back to about $3.)

So what does the infographic say? That oil production is up 2.5% in the first quarter of 2008 while consumption is up only 2%; that output will go up by 4.1% by the third quarter while consumption is projected to only rise 1.6%; and the US oil consumption was down 4% in January, during the biggest heating month of the year!

Of course, by the time the prices come down a new president will be in office and he (or, God forbid, she) will be able to take credit for that which they have no control over. Such is demagoguery and politics.

At least we’ll be paying less for heating oil next winter.


Written by
Domenico Bettinelli