During these times it is good to keep track of the oil price as it presents us with a good indicator of what’s happening in the economy. Currently, it’s at $108.02 and has been rising.
These two major things have happened this week:
1. $700 billion agreement plan
2. Investors worried about the U.S. dollar, debt, and inflation
When government spending increases, this tries to stimulate and shift the demand to increase GDP, but this can also increase the price level. When people hear inflation, they want to hedge themselves from it, and buying crude would be a good idea.
We can probably dismiss our expectations of another oil price peak anytime soon as the uncertainties and the weather has been playing down on US demand for oil.
These two major things have happened this week:
1. $700 billion agreement plan
2. Investors worried about the U.S. dollar, debt, and inflation
When government spending increases, this tries to stimulate and shift the demand to increase GDP, but this can also increase the price level. When people hear inflation, they want to hedge themselves from it, and buying crude would be a good idea.
We can probably dismiss our expectations of another oil price peak anytime soon as the uncertainties and the weather has been playing down on US demand for oil.
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