FinancialAdvisor's College Class (FACC)

[d33c4f]

I think you're a bit confused.

If the American economy goes into recession... The world economy will go into recession.(most notabley China)

Thus, decreasing world demand for oil

Opec has more control then they let on.
What's let on is that they have no control..and that is complete bs.

Oil is a market like any other and is run by big money flows
Opec creates top and bottoms..not the consumers buying gas
They simply follow it

There is no shortage in oil.
There is declining amounts of cheap oil
The world will never run out
The SPR is full

The U.S uses far less oil then they did in the past

Higher oil prices create those 2 reasons you bring up.
They create the opportunities to explore and to pull out expensive oil
And create the need to look into alternatives
Change social habits etc etc

My theory.
The oil price is going up because it's over-all longterm demand is going down.
The higher price is to force the change away from it.
The world economy is evolving away from oil