Economic Growth and Oil Prices

*****Economic Growth and Oil Prices

*****Bakken Earnings Blowout

*****Maguire Properties Up 28%

Fellow investor,

The headline reads “Oil falls to near $82 on weak US crude demand.”
As if that’s some kind of revelation. The better question is “why is crude
oil $82 a barrel when U.S. crude demand is weak?”

The latest round of economic data for the U.S. is pretty much the same as it
has been: not disastrous, but not strong by any means. June consumer spending
was flat and household purchases rose just 1.6% in the second quarter.

Many analysts still seem to think that oil prices are driven solely by demand
in the U.S. But a report from Sander Capital sums up the reality: “The
underlying fact is the emerging markets are still growing and so is their
consumption of energy