Monday, January 31, 2011

Oil Prices on the Rise

Oil prices are near recent highs, and many are blaming the protests in Egypt as the cause.

But, oil prices were on the rise before Egypt.

The rebounding US economy should be getting credit for higher prices at the pump. As the economy improves and folks head out in their cars for the daily commute, shopping, and driving the kids around, the demand for oil increases.

Of course, the events in the middle east will contribute to the supply side. Or, the events will increase the fear premium on middle east crude.

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