Weekend Edition: Rising Oil Prices May Threaten Global Economic Recovery

Welcome to the weekend edition, a small collection of links to interesting personal finance related articles and economic news from around the web.

Last Thursday WTI oil briefly touched $100 per barrel while Brent oil reached $119 a barrel in the wake of the worsening situation in Libya. If the turmoil spreads to another major producer such as Saudi Arabia, oil prices would certainly pop above $150 easily. If extremely high prices are sustained for an extended period of time, there is a danger the fragile economic recovery gets pushed back into a second recession. I was never a fan of oil above $100; Why would I want to strangle the golden egg laying goose.  A price range of $80-$85 per barrel is affordable for everyone and nets handsome profits to investors.

Can you imagine the disaster if oil hits $200 a barrel? Can anyone still afford to print money and take on more debt to re-launch the economy following the shock? It’s all been spent and we’re not even out of the woods yet. All of a sudden the fate of the world economy hangs on the outcome of Libya’s revolution and Saudi Arabia’s stability.

Oil stocks followed the general market as it reacted negatively to the rising price of oil. That is because the market is stressed about the prospects of a second recession. If you’re a buyer in this market, it means you believe Saudi Arabia will fill the Libyan production void and will come out fine after they launched their own “QE” measures to buy peace. If you’re a seller, I guess you’re nervous enough about that second recession and you’re not willing to be left holding the bag in the wake of a second crash.

I believe we will be just fine because Saudi Arabia increased its oil production to cover the Libya loss. What will happen next might sound insensitive, the world will just ignore the bloodshed in Libya now that oil supplies are secured and focus on Saudi Arabian stability.

Are you a buyer or a seller in this market?

Economic roundup:

US Will Be the World’s Third Largest Economy

Economists Warn Greece May Have to Quit Euro

India Says Economy May Grow as Much as 9.25%

Russia Unexpectedly Increases Refinancing Rate

Distressed Homes Sold at 28% Discount Last Year With `Bloated’ U.S. Supply

Weekly blog roundup:

InvesItWisely talks about the Lessons Learned from Moving Out at a Young Age.

BarbaraFriedberg PF explains WHY YOU MUST START SAVING NOW!

Home Security System in Canada reviews the Reliance Protectron security company.

101 Centavos has an excellent Career Tip #3: Watch Out For Scorpions

The Passive Income Earner with a review on Dividend Yield: Enbridge (TSE:ENB) and finished his Banking series with Dividend Yield: National Bank (TSE:NA)

DIY Investor on Indexers are Human Too

Buck Inspire with an experience Can Stocks Outperform an ETF?

My Own Advisor just Bought Another Dull and Boring Stock

Balance Junkie has Mixed Feelings about Passive Investing

Enjoy the Weekend!