"The world's first demand-led energy shock"
With oil prices approaching the symbolic threshold of $100 a barrel, the world is headed toward its third energy shock in a generation. But today’s surge is fundamentally different from the previous oil crises, with broad and longer-lasting global implications.
Just as in the energy crises of the 1970s and ’80s, today’s high prices are causing anxiety and pain for consumers, and igniting wider fears about the impact on the economy.
Unlike past oil shocks, which were caused by sudden interruptions in exports from the Middle East, this time prices have been rising steadily as demand for gasoline grows in developed countries, as hundreds of millions of Chinese and Indians climb out of poverty and as other developing economies grow at a sizzling pace.
“This is the world’s first demand-led energy shock,” said Lawrence Goldstein, an economist at the Energy Policy Research Foundation of Washington.
Exactly. As Oustanding Investments editor Byron King pointed out a few days ago by way of example, which is more important — Iran's 3.7 million barrels a day of production, or a 5.3 million barrel drop in oil inventories as reported by the Energy Information Administration on October 24?
That's the sort of thinking that's made so many profits in the natural resource sector for Oustanding Investments subscribers. And now Byron's taking it to the next level, with a new service called, appropriately enough given the subject matter of this post, Energy and Scarcity Investor . You can learn all about it here .