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Is Oil a Bubble? Part One

Supply and Demand 101....Just because you get a PhD, it doesn't mean you can forget the first day of school.

Prices will increase until demand shows some elasticity. When a rise in price causes a drop in demand large enough to create a net drop in revenue prices will stop going up.

Of course the reaction is delayed, and we are still waiting for the demand side of the equation to react, but it is inevitable. Then comes the price correction.

Timing the inevitable can be a bit tricky.