Oil Prices Continue to Rise

Great news. Oil prices are climbing. This obviously means the economy is growing, and we're all using more oil. Congratulations!

I think this means that since we all have jobs and wages, we now can afford not only iPad 2s and Android phones, but higher prices at the pump! It's just chump change in this high-flying economy!

Okay. Back to reality. Higher oil prices impact our ability to spend money on other things. We will spend money on driving back and forth to work, and taking the kids to soccer practice. The reality is that this economy runs on oil. I sure wish we had a blend of other fuels, like natural gas cars and more hybrids. But that's not what we have. We have gas-powered cars.

Until things change, we watch the balance of supply-demand in oil. It's razor thin. There's not much margin for error in the world demand for crude.