Despite previous predictions, the price of crude oil rose by a significant amount this week. This was due to the decrease in inventories and the general fear of inflation caused the price of crude to shoot up higher than expected. This loss of inventories has shocked many investors who expected the inventories to remain constant. This has lead to an increase in price for crude oil, having it break though the $84 mark, something many analysts were not expecting it to do anytime in the near future. Gasoline inventories fell by 2.6 million barrels, far more than the 300,000 which was expected to happen. Oil in the U.S. is approaching a 27 year high.
What does this mean to investors? In the short term, it means that the savvy investor might be able to reap a quick reward by investing in crude oil. Yet more and more, everything I see points at the inevitable eventual decline of the oil industry. There is never enough oil to satisfy the demands of consumers, who are constantly strung along by the giant oil conglomerates. I can not help but feel that there is a an immense unfilled niche in the oil market. When this niche is filled, not only will the consumers be far better off, but the investors who set about the change will be in a position to make untold amounts of profit.
http://online.wsj.com/article/SB10001424052748703735804575535692968175852.html?mod=WSJ_Energy_leftHeadlines
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