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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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World oil demand may rise 2% in '05
Consumption; Demand; Prices
World oil consumption may rise 2% next year, led by increased usage of diesel, gasoline and jet fuel in the US, according to the latest research report released by Societe Generale.

Business Standard - India
Posted on Monday, June 28 @ 13:55:22 PDT by admin
 
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