Taking a break from penny stocks for a bit. There is some big news in the area of oil. Oil seems to be pushing slowly back to record prices of $100 a barrel. That means more heartache ahead in the midst of a recession. What else could go wrong you might ask yourself? Well the answer is that with the push in oil prices, we will also see an increase in goods and services, as fuel and transportation costs increase. If you thought it was hard to buy groceries now, imagine what may happen in 2-3 months. It is estimated that oil will reach over $100 a barrel before the end of 2010. It is probably due to the growth in the US ecomony, signalling a turn for the better out of the recession. However, before you start opening the Grape Juice bottles, the US is not expected to come out of the recession fully until another 2 years. So guess what, our suffering will continue for a while longer. There are many speculators claiming that oil will reach $200 a barrel, but this is not based on proper analysis. If oil were ever to reach that level then we would be in another great depression. For now, conserve, converse, follow the ant, save for a rainy day.
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