Oil has been one of the big pieces of news recently, with some forecasters predicting much higher prices at the pump, whereas others are predicting a stabilization and downward trend as other countries start to increase their output.
The price of oil is important for our economic recovery, and if prices continue to climb, this will not be good. A higher oil price can negate all the progress we’ve seen so far.
To the right is the historical price of oil. Let’s not forget we’ve been here before and survived.
In case you’re curious where the world’s oil supply comes from, there’s the breakdown by country. I think there’s a perception by most Americans that we get all of our oil from the Middle East, but that’s simply not the case. Saudi Arabia, for instance, is only 11.9% of the world’s supply.
That’s a lot, but it’s certainly less than what most people perceive.