DTT Buzz

When will the oil bubble pop?

The oil bubble is just like any other bubble. It starts out small and grows. Eventually getting so big that it bursts. Just like the housing bubble, and the technology bubble, it will pop. Everyone wants to know when. How much will oil have to be a gallon before it pops itself? With the national average having reached $4 a gallon for the first time this past weekend, most want to know "where will it end?" Is there a critical point where enough people stop buying gas and start walking, bike riding, or taking the bus? There may not be an answer to that question now, but everyone has their limit. Will it take$5, $7, or even $10 a gallon before people stop using cars and use other means of transportation? Eventually the price spike will cause a sharp cutback on oil consumption, causing prices to drop. The million dollar question is when.

Megan Grant

DaytradeTeam