[Grut]

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!

[proxy_user]

What do you mean, compete? If they can come up with $70, they can buy a barrel. If they have $140, they can buy two.

They have in fact been receiving a lot of dollars through manufacturing and outsourcing contracts.

[roverman2K6]

Agreed, this is speculation, I am afraid most of us here on this site would hate to think there are games to be played in the fair and open market. But.... the open market is not fair when we have no choice in the matter or there is true effective monopoly. Utilities and Gas are that way. Just like the manufactured california shortage, this is going to make gas stay high and once the companies get used to the high revenue low output they will fight to keep it that way. If we save too much they will say it costs more and we will still pay the same price as we cut back.