We have a contrary indicator on oil! The Economist cover this week features a story on oil. This cover, along with the inability of oil to continue its gains, suggests we might have seen the worst for the short-term.

I’m not the only one who thinks this. Barry Ritholtz at The Big Picture and CEO of FusionIQ, a person whose opinion I respect, believes this as well. This makes me feel more comfortable, as this guy does this kind of stuff for a living.

I know it’s probably hard to believe, but everything has to take a breather at some point. However, I by no means am suggesting that oil prices will hold or decline for the long-term. Supply and demand still suggest that oil will remain expensive and continue to increase in price over the next few years…and maybe longer. I’m only suggesting that it might take a rest for a while. How long? I’m not sure.