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Oil Prices Are in a Bubble, a GOOD Bubble

Posted June 23, 2008

“In the meantime, we should look on the bright side, even as we wince at the petrol pump. Because if the current oil price is indeed a bubble, it’s a good bubble.” — John Stepek

by John Stepek

Blogger’s note: John Stepek, deputy editor of MoneyWeek in the UK, recently sent out this interesting piece to his readers on current oil prices and the reasons an oil bubble is a good thing. And I thought you’d appreciate a look. You can find the article here or read on for more.

Baltimore and London — (TFN): Oil is hogging the headlines again this morning, which is convenient.

At near-$140 a barrel, oil prices are a good scapegoat for all our economic ills. No wonder Gordon Brown hopped on a plane to Jeddah to attend yesterday’s meeting. Not only did it get him away from an increasingly hostile electorate, but it also drew attention away from his own shoddy economic policies and the mess they’ve left us in.

The upshot of the meeting was that Saudi Arabia confirmed it will raise oil production to a 30-year high. But no one thinks it’ll make a difference right away.

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USGS Recently Admitted, “It’s the largest continuous oil accumulation the agency ever assessed.”

Today, just 470 miles from Helena, Montana, America’s greatest wealth boom is quickly - and secretly - underway.

Thanks to a unique technological breakthrough, a group of scientists just unlocked the largest oil deposit in U.S. history… 503 billion barrels worth.

And they can now extract it for just $16 a barrel. With oil nearing $140, news of this momentous discovery is already boiling over - at breakneck speed.

The three outfits leading the way each averaged 21% gains within the past 11 days. And they’re just getting started. To find out how each one could triple your money - this year - read on for your free report.

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There’s plenty of debate over why oil prices are moving higher. I suspect that oil has run ahead of itself somewhat for the time being, though that’s not to say it can’t go any higher – I’ll get onto that in a minute.

But in the meantime, we should look on the bright side, even as we wince at the petrol pump. Because if the current oil price is indeed a bubble, it’s a good bubble… Read on to learn more.

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Posted by John Stepek · Filed Under Oil and Energy 

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