Who hasn’t been taking notice of the oil prices lately?
Investors have balked at the prices and cheered on companies that can stay profitable. Companies have minimized expenses and maximized efficiency – and both you and I have enjoyed the resulting cheap product.
Let’s focus for a moment on that last one. Cheap oil prices are undoubtedly making buying easier for consumers at the pump.
And when gasoline costs less, consumers buy more. They make more travel plans. Moreover, cheap gas has lead to a new comfort level for the American oil consumer.
And during this period of low prices, in this time of lax prices, demand has soared. The International Energy Agency (IEA) has estimated that the world demand for oil will increase by 1.4 million barrels a day this year.
As we’ve said time and time again: oil supplies may be high right now, but demand is growing with it. It’s only a matter of time before we work our way through the current supply glut.
And this will only help oil prices rally going forward.
To continue reading…
Click here to read the Wall Street Journal article. (May require subscription to read in full.)