Who is Making the Oil Fume ?

Re: # 19

you are over-reacting... beating up your friend for owning an i-pod is simply stupid... :)

you should still support local industry, globalisation doesn't prevent you from doing that... in fact, it helps the process - after all, "local industry" in china which are billed as the "manfacturing powerhouse" today have come up via globalisation...

In contrast - we all know with all the "support" - local industry in india went nowhere...

Re: # 18

And where, if not on Wall Street, do these speculators sit? The stage is set to make the rest of the world help bail out the sinking US dollar.

The dollar be damned, forever....

Re: # 4 Ijaz Gul sahib,
Why discuss what is known!

The WW-III started way back in 1973. Research the history of gold and how price hikes are linked to important war moves and banking (usury) sector decisions. Amazing!

Too bad, the Arabs wasted God-given 'liquid gold' that flows under their feet for free!

Majumdar sahib,
Yes, they were dumb enough to do that because they cared more for the continuation of their dynasties than anything else.

#18 It might be fair to say that high fuel prices and food prices are the US indirectly offloading its post-war deficits on to the rest of the World. We're actually paying to let them steal Iraq's oil and inevitably from us as well.

This is the price of globalisation and the purpose of American promotion of democracy across the World. This is the cost of the vastly immoral, pro-democracy middle-classes and their hankering for Levi's and Mcdonalds.

Have some morality ....Go to PapaSallis instead ..buy Tops and Pakcola.. Support local industry.. don't talk to Americans .... insist on a nationalised Sui....beat up your friends if you find them showing-off their latest purchase of imported goods... the list goes on and on..

This high oil price is because of speculation and nothing else... this is yet another bubble... no way demand has gone up two times in one year...

Any the higher demand because of rise of oil usage china and india would be gradual... this sudden price rise makes no sense... it's just like the housing price rise where house prices went up 30% each year, purely on speculation... it's fkin self-propelling spiral...

Are you telling me that US starting consuming 2wice as much oil in the last year or china and india quintipled their consumption to have the per barrell price of oil double in the last year?

where is the largest market for oil futures trading...?

Re: # 11
If you look at the pattern of the producer consumer graph of Crude oil, major producion countries are minor consumers (Vene..., Arabs...). Unless and until these countries feel internal pressure, they will not reduce price.

Re 12

majumdar sahib,

Thank you for enlightening me.

Re 14

The world is feeling the pinch now.Hybrid cars and fuel efficient vehicles are now better positioned to penetrate the markets.

Regards

The required structural changes are slowly taking place. Several SUV and truck plants in teh US have been closed. Ford company is shaky. More SUVs will be scrapped for smaller cars. Public transport usage will increase. Once there is a decline in oil demand, the prices will fall.

It will take a year to achieve this, and the US has the most dominant effect. US consumes 8 times more oil than india. A .5 percent reduction will be phenomenal.

The required structural changes are slowly taking place. Several SUV and truck plants in teh US have been closed. Ford company is shaky. More SUVs will be scrapped for smaller cars. Public transport usage will increase. Once there is a decline in oil demand, the prices will fall.

It will take a year to achieve this, and the US has the most dominant effect. US consumes 8 times more oil than india. A .5 percent reduction will be phenomenal.

Delirium sahib,

You could have a point that this price increase may be driven by speculators rather than fundamentals. At the same time I must point out that even small supply-demand imbalances can cause prices to swing drastically even in commodities other than oil.

Regards

Plain economics yes; But how does that explain the doubling of the price during a period of just 1 year without any abnormal increase in the corresponding demand and some increase in supply as well?

Nkg,

Re: #9

Correct.

Regards

To stabilize oil price, Govt.s have to stop subsidizing it. Let the market decide the price. The oil price id increasing and the consumers are not paying it directly. So, how the supply-demand balance be maintained?
With current consumption level in West and no new major oil discoveries energy prices will soar....Plain economy, no politics....

Ijaz gul sahib,

(Lesson learnt by USA was never ever allow it to happen again. )

I am glad that USA has learnt its lesson. I hope so have the oil exporting countries.

Regards

"Else are we going to see a big improbable change?"

If that happens all the established modeling will crumble before our eyes. In a way it would mean "no knowledge better than knowledge".

Do we have any probable improbables...