Oil Prices

Very, very interesting column from Ed Wallace that you can (and should) read here. You might remember we’ve profiled Wallace, a high-profile automotive journalist and radio personality, in the pages of National Oil & Lube News before. 

While I won’t give away what he has to say, it’s interesting to note that the run-up in crude oil prices (indeed all commodity prices) is partially (or maybe even fully) due to an influx of investment money. Simply put, entities (be they hedge funds, wealthy investors, etc.) are looking for safer bets than traditional investments like mortgages, stocks and such, and so are throwing a ton of money at commodities like crude oil, beef, corn, etc. What happens in a free market when there’s a rush to buy certain things? The prices skyrocket. Until the crash.
Because if there’s one thing the history of economics has taught us, it’s that when the “bubble” bursts and prices begin falling, many of those same hedge funds and investors that are artificially propping up commodity values will pull out lickety-split. When that happens, and all the investment money that was flowing into commodities begins to pull back out, the prices plummet. Could we see that with crude oil? Read what Ed Wallace has to say.

About National Oil & Lube News

National Oil & Lube News is the fast oil change industry's oldest and largest trade publication. Started in 1986 by Steve Hurt (a former fast lube owner) and David Arrington, NOLN has grown and evolved right alongside the fast lube industry. Here at NOLN, our aim is to help fast lube operators with every facet of their business, from operations to technical issues. Our monthly magazine and this regularly updated website contain everything from technical tips, recall announcements and service guides to articles on handling customer complaints, building your brand and making your business the best it can be. With tips and advice from experts both inside and outside the industry, you're sure to learn something that can help your fast lube business grow and prosper.
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