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Has the Oil Bubble Burst?


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Oil at $120/barrel isn't really a bust IMO.

 

Oil at $50 a barrel still isn't a bust IMO.

 

In the late 90's, when oil was $15/barrel and lower, that was a bad time for the oil business. Around 2003-2004 when oil started to move up to around $50/barrel, oil companies thought they were in heaven.

 

The past year or so when prices have skyrocketed has certainly been insane, and quite the "boom" for oil companies. But even when the "boom" is over, and oil drops back below $100/barrel, I wouldn't say that it's necessarily a "bust". It's still plenty high for oil companies to keep expanding and growing and making a very nice profit.

 

Oil in the 80's was a "bust". Companies were closing their doors and downsizing left and right. Oil of 2008 is nowhere near a "bust". Is the oil "boom" over? Maybe. Is the oil "bust" beginning? I doubt it.

 

Plus, just wait until Israel attacks Iran. If $140/barrel was high, I can only imagine what it will hit when that happens.

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