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.
Posted: Tue Apr 29, 2008 12:10 pm Post subject: Re: OPEC warns oil could reach $200. 'PERFECT STORM'
When the MSM is out-dooming us here at PO, you know we're in trouble.
A bit over a year ago I predicted $160 this year, a figure that was dismissed as premature by some of the more seasoned and informed posters on these threads. Now even my doomerish predictions are being topped in headlines by major economists.
It reminds me of the climate models that up to last year predicted that an ice-free Arctic would not occur for a century or so, at worst. Now many are predicting total melt this summer or within a decade or so at best.
Posted: Tue Apr 29, 2008 12:40 pm Post subject: Re: OPEC warns oil could reach $200. 'PERFECT STORM'
Eli wrote:
And Seahorse the inverse is also true, if lets say they do decide to depeg Oil would shoot past 300 dollars a barrel.
BY de-pegging the dollar is no longer the world currency and no one would want to hold the dollar, all those dollars come back to us and oil does a moon shot.
Then oil might crash as the worlds biggest economy crashes and burns.
That's the truth: a 150 Euro barrel of oil is more frightening than a $300 barrel of oil. _________________ http://www.ronpaul2008.com/
"We are building a religion; we are building it bigger. We are widening the corridors and adding more lanes."
Cake - Comfort Eagle
Posted: Fri May 02, 2008 9:20 pm Post subject: Re: OPEC warns oil could reach $200. 'PERFECT STORM'
seahorse wrote:
Now, if its a falling dollar that's the problem, it would seem that would cause, in and of itself, the countries of the world to start trading oil in a basket of currencies and not only the dollar. Of course, that's not a very dollar friendly move...
Just here to point out, again, that this is wrong. Trading oil in a "basket of currencies" (what does this even mean, anyway? But that's another discussion) is neither "friendly" nor "unfriendly" to the US dollar... it is simply irrelevant.
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