galewhitaker

Fundamentals Don't Support Oil at $55-60 a Barrel

Many folks realize that the production rate of oil is declining. It dosen't matter that inventories are high. As an investor I know that no one is making more oil and that eventually the price of oil is going to skyrocket. It's a classic declining resource situation (just like I was taught in college). There are tons and tons of gold stored in inventories all over the world but because it is a declining resource the price is increasing with time. Unless you believe that god is making more oil for us down in the underground I think you folks should tuck a little USO in your portfolio.