Saturday, June 21, 2008

Barron's Magazine cover story - June 23, 2008

Bye, Bubble? The Price of Oil May Be Peaking

THERE IS GROWING TALK OF AN OIL BUBBLE, THOUGH evidence of asset bubbles isn't conclusive until they burst. The trajectory of oil prices in the past eight years looks eerily similar to the Nasdaq's eight-year run to a peak of more than 5,000 in March 2000. More than eight years later, the Nasdaq is at half that level.

"My basic message to those who say that prices have to go up forever is that the oil markets have been cyclical for 140 years. Why should that have stopped?" says Edward Morse, chief energy economist at Lehman Brothers.

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