Yesterday, the stock market plunged, reportedly in response to the continuing decline in the price of oil. It was a reminder that the windfall consumers are currently reaping in lower gasoline costs will likely prove fleeting. And that we better hedge our bets against future spikes. The Saudis are currently driving down oil prices as they periodically do: by manipulating supply. Their stated reason is to destroy the U.S. fracking industry, which is threatening their ability to drive prices up in the future. In the process, however, the Saudis are crushing the economies of those dependent on oil exports, like Russia, Iran, Venezuela and the Islamic State. Chances are good that at least one of them will act to interrupt Saudi oil production. We better act now to protect against that eventuality. centerforsecuritypolicy.org/2015/01/06/hedge-now-against-future-oil-price-spikes/
Posted on: Tue, 06 Jan 2015 12:22:38 +0000
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