CBS is reporting: $5.00 gasoline "returns" to the Southland. Predictable.
CNS reports: price of gasoline doubles under President Obama.
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So, the two headline stories above the fold in today's holiday edition of The Boston Globe. Neither story related to the other. The big photo-story: the very contaminated Mystic River in Massachusetts will be a nightmare to clean.
And, then, next to that: Thank goodness for fracking. Shale oil reviving refinery industry: fracking offers a cheaper supply; keeps gasoline prices from rising more. Little consolation. Cue up Connie Francis.
And so it goes.
Do you want high oil prices or do you want low oil prices? Who`s side are you on? In case you did not know---high oil prices are good for the oil industry----so who`s side are you on?----
ReplyDeleteThe comment above was edited slightly before posting, but the question was not edited.
DeleteI have stated my position pretty clearly with regard to my feelings regarding the price of oil; in fact, I think I just posted those thoughts, again, very recently.
But, no, high oil prices are not necessarily good for the oil industry. All things being equal, if the price of oil gets too high, there is a risk of a recession; as a broad-based investor, I prefer not to see a recession. Nor would I want to see unemployment increase.
Interestingly enough, if one reads the earnings reports, oil companies can actually lose money even in the face of high oil prices.
Thank you for taking time to write.