Supply fears, greedy Americans, the price of tea in China, whatever. It'll stay high because they know they have us over a barrel and will pay whatever they demand.
"Lee said prices could also surge closer to US$90 a barrel if there were further negative developments."
Cool, the bird flu will keep me home so I won't need to drive anywhere. I'll still be able to tune in and watch Bruce Willis destroy the asteroid that's headed this way.
it should test 97-ish; but it would be a flaming sell if it did, imho.
Todays price drop has them worried that they can't get there millions out of the oil market before they make less profit. So they conjure up a story like this. Anyone else notice this trend?
Did you see that the Socialist Paradise of Venezuela is having to buy oil on the spot market from Russia in order to meet it's contracts? Who would think that the nationalization of an industry by a Socialist government would effect production rates? Go figure.
Good. I hope they climb even higher than that and stay up there. The more oil prices rise the more economically viable it becomes to develop alternative energy sources. And once it becomes profitable to invest in these, capitalism will take over and new technologies will flourish. Conversely, as long as oil is cheaper than any alternative and there is no free market incentive, we will never stop importing oil.
Yes, I do realize that this would hurt my wallet for a while. But skyrocketing gas prices are not only the most effective route to independence from foreign oil, they are the only route to independence from foreign oil.
We keep being told that the high prices are a result of supply and demand, pure and simple, but do we really believe that, suddenly, economies like China's and India's are so strong they can compete head-to-head with us for a limited supply of oil? These are countries where the water buffalo is still a major source of agricultural power, fer Pete's sake!