Belmont Club

By Richard Fernandez

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The logistical tether

August 25, 2008 - 11:14 pm - by Richard Fernandez
SamIam
2008-08-26 00:57:00

Information Understanding Request, how come oil keeps dropping? The demand has not dropped and tensions on the supply routes have gone up! Not down and supposedly the reasons for the astronomical price spike was A. there was more demand for crude oil then what was being extracted from the ground (and now Saudi Arabia is starting to call for a cut back on oil production.) B. Refineries were at maximum ability and only new ones would relieve the inability to process any more extracted crude. There are other factors too, but why has oil stopped going up? Was this a “roll Uncle SAM” financial game or are the numbers being cooked somewhere that caused an artificial run up? there were only a few place/people that received the massive profits (not the American Oil companies, they have already been investigated) from the triple price increase. Did someone pull out a secert weapon and threaten to use it?(i.e. a different proven cheap form of energy) Now that oil is so high will it ever fall back to the $35~45 a barrel?