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What is happening in the oil market? First off, we've seen seen a high of $147.27 per barrel last July and a collapse to $32.40 per barrel on December 19 when the US economy was in shambles. Now oil has recovered to about $60.00 per barrel
Oil, of course, generally follows the growth in our economy As our economy picks up, so too does the demand for oil. The question at hand is: is our economy really growing? Paul Krugman, the Nobel Prize winning economist, says that the world economy faces 10 years of stagnation, mainly due rising unemployment in the US and Europe. David Fyfe, head of IEA's oil industry and markets divisions says: "there is oil overhanging the market." Japan's economy shrank at a record 15% pace last quarter. The European economy shrank at the fastest pace in 13 years.
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