Oil surges to $108 a barrel

[SDLinda]

tsmaster Wrote:If demand is reduced, prices will come down.

That's what I learned and taught in economics class, too.

But just yesterday I heard a news report that said that gas refining is DOWN IN RESPONSE TO lessening demand!

This should remind us that prices will come down when demand is reduced ONLY if supply stays the same. But the oil companies are manipulating the supply. I didn't hear one analyst bounce on this report.

Of course, in the long run, if we REALLY reduce demand by changing technology and our habits (not just the token changes we are making now), prices will come down.

[tsmaster]

Some interesting points there SDLinda

I get the feeling prices are going to keep on rising perhaps up to $200 per barrel before they start dropping. Very worrying for motorists though.

[Jed K]

Prices are now up to $143 a barrel:

http://edition.cnn.com/2008/BUSINESS/06/...index.html

Wow...

[tsmaster]

It's crazy. It's not far from $150 per barrel now. High oil prices and recession go hand in hand.

And if the US goes into recession, it's likely the effect will be felt globally.

[sunken]

It's interesting just how much oil has gone up in the last four months from your original post on the subject. I really do believe that speculation is a large part of the vast jump in oil prices. If they can do something about that, then there is a chance to see them drop. If not, expect more and higher in the coming months. And all bets are off if someone bombs Iran.

[Jed K]

An interesting read:
Oil at $200 a barrel by year’s end?

[Jed K]

Prices are now down to less than $114:
http://edition.cnn.com/2008/BUSINESS/08/...index.html