the current price of oil is based on pure speculation and nothing else, there have been a few programs on it in recent weeks, there is as much if not more supply almost everywhere in the world, even allowing for strikes in nigeria, but speculators are driving the price up.
Slán
~M


>Oil prices are out of this world and some corporations and governments are reaping huge windfall profits.
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>I'm no good at searching Google, but my simple attempt suggested to me that the basic price is set by the New York Mercantile Exchange - NOT the producing countries or OPEC (they control production, which can only indirectly affect the price).
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>Theoretically the price is governed by the "law of supply and demand". And there seems no doubt that China and India have had unparalleled growth in their demand for oil in very recent times.
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>But the California "energy crisis" - that was not a crisis at all but a situation totally created by Enron and their pals - keeps coming to my mind.
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>My guess is that, to understand this alleged crisis and learn if it really is one or not, we need to know WHO SETS THE PRICE OF OIL. by "WHO" I mean, of course, who do these people (who set the price) really work FOR? Do they work for oil companies, who actually do a whole lot of drilling/oil production? Has OPEC infiltrated the select group? WHO ARE THESE PEOPLE?
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>Several years ago now the major oil companies in the U.S. "consolidated", meaning that they bought up smaller companies and closed refineries that were in proximity to each other. This, of course, greatly diminished production capacities. particularly when there was a shortage (instead of running at an average of 50%-60% capacity those left now run at 90%+ capacity, leaving no margin for shortages).
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>That China and India need more oil is mainly the result of manufacturing moving to those countries, so there SHOULD be a corresponding decrease in requirements in those places where the manufacturing USED TO BE.
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>The whole thing has the same smell as the California "energy crisis" and it would be real nice to be able to be sure that the problem is real and not manufactured.
>
>cheers