After US went into recession in 2008 the oil price plummeted all of sudden from nearly $150 dollars each barrell to about $60 each barrell. But the steady recovery of the US economy brought along a steady increase in the price of crude oil over the last 6-9 months. This correlation of economy and the oil price has always been a threat to many countries.
Last week when the volcanic ashes caused many airports shut down the oil price dipped and again it recovered in a week to an average of $2.85 a gallon. This positive correlation might indicate that as the US economy recovers over the next few years there will be an oil bubble inflation which might turn into someother economic downturn. At this point of time, what is more important is investment in renewable energy source. Since a lot of money is being invested as a recovery plan, investment in such sectors will secure future also present.
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