However when prices rise as fast as they have its a bubble as nothing fundamental has changed, supply and demand are pretty much the same as 3 years ago so why has the price of oil trebled.
Why have prices done up so much when
*Production has increased at a faster pace than demand?
*Oil inventories are at historically higher levels?
*Goepolitical stability is greater than 1 year ago?
Except that their "evidence" is (a) unregulated contracts trading (which they have no reported information about) and (b) an analogy with the dot.bomb collapse and market irrationality.
So the argument based on a) is pure conjecture "we don't know whats going on so it must be speculators"
and
b) is comparing a phenomenon casued by the buying and selling of companies based on ideas but with no real world existence, income or product premised on a belief that market cycles didn't exist. But talking about trading in shares and trading in supply contracts (futures) as being the same thing is wrong, one is speculating that an entity may or may not make a profit the other is speculting that a commodity will rise (or fall) in price by a ceratin amount. There is no analogy...
Joined: Jan 03, 2002 Posts: 2,301 Location: Kauniainen, Finland
Posted: Fri 18th Jul 6:09am Post subject:
When do we bolt the supercharger to the Falcon Coupe and paint it matt black, drive aimlessly around country roads taking out motorcyclists in the name of honour.
Joined: Jun 20, 2004 Posts: 4,587 Location: Back in the Hood
Posted: Fri 18th Jul 4:31pm Post subject:
Fraser wrote:
When do we bolt the supercharger to the Falcon Coupe and paint it matt black, drive aimlessly around country roads taking out motorcyclists in the name of honour.
Joined: Mar 10, 2004 Posts: 3,817 Location: The not too distant future...
Posted: Thu 14th Aug 10:06am Post subject:
There have been "oil prices have peakd" stories in the financial and mainstream US press all the way from US$60 a barrel. Why should this article be any different?
Our own Treasury did an analysis of all these articles last year and concluded that we would be back to US$60 a barrel by now. The hippies and geologists are the ones who got it right.
Joined: Dec 25, 2001 Posts: 33,828 Location: Liberty City
Posted: Thu 14th Aug 10:13am Post subject:
radical_edward wrote:
There have been "oil prices have peakd" stories in the financial and mainstream US press all the way from US$60 a barrel. Why should this article be any different?
Our own Treasury did an analysis of all these articles last year and concluded that we would be back to US$60 a barrel by now. The hippies and geologists are the ones who got it right.
A workmate had a very good theory about the relationship between the U.S. Peak Oil denialists and the number of creationists in the U.S.
Of course oil won't run out - God will keep on making it
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