FeverBuster

The Oil Bubble Will Meet the Same Fate as Tech, Housing

Oil bulls need to realize that as oil price rises, any cash profit they make in realized value decreases over time. Since oil contributes to inflation when it goes up, it essentially erodes the profit that you are making. Inflation becomes the check and balance for oil pricing. So, a dramatic price drop in oil to get inflation back in line would allow the market to explore higher prices once corrected in the future.