From guest Crux poster Brett Owens:

With the global economy in the toilet, there's no need for oil producers to run pumps at full blast. But as Frank Holmes & Co. over at U.S. Global Investors recently posted on their blog, oil supplies are going offline at an incredible rate.

The bulk of U.S. Global's assets are in commodities... so remember it's their job to be bullish. But as this chart shows, if the economy picks back up and inflation gets going, a supply shortage could result. U.S. Global adds:

"It's also important to point out that it is much cheaper and easier to cut supply than to bring that same supply back on line. Demand for commodities will likely be hastened by the trillions in stimulus spending by the United States, China, Europe and others. When that happens, there's a good chance of a supply shortage."

Read full article (with excellent chart of oil supply dropping off a cliff)...

More oil posts:

BIG bullish sign for oil services...

Top money manager makes HUGE bet on oil service companies

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