Tuesday, March 8, 2011
crude oil redux
Two weeks ago I highlighted the New York times headline on crude oil prices. Crude prices have moved up about five dollars a barrel since then. Above this post you will find two more pieces of evidence for what I see as a bullish investment crowd in crude oil.
The first image is of the latest cover of The Economist. It tells us that crude oil prices have lit the fuse of a bomb which will destroy the worldwide economic recovery.
The second image is of the front page of today's Chicago Tribune. It speaks for itself.
At the top of this post is a monthly chart of West Texas crude oil prices. The market is still trading well shy of its 2008 high of $147. But it is also up 300% from the $35 low of late 2008 and has been moving steadily higher for more than two years.
I think that while prices will probably move higher from here, maybe to $112 or so, the next big swing in crude oil prices will be downward.