Tuesday, December 30, 2008

Who's fixing the oil prices?

I've been listening to the arguments on the price of oil.Some say speculator driven,some say supply and demand.World oil consumption is roughly 85 million barrels a day.In August of 2007 the price of crude was around $70 per barrel.It more than doubled to $147.27 on July 11,2008.It dropped over 70% to less than $40 per barrel in December 2008.Those are some extreme swings in prices when demand only fluctuates by 1-2%.So,up over 100%,down over 70%,all from demand fluctuations of less than 2%?I don't think supply and demand tells the whole story,do you?More to come...

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