^^ nice demand and supply curve, that's a nobel prize for you
jump higher boy,
Hint: EIA graphs are not a demand and supply curves, but I guess you didn't get the memo
This bit is a bit more controversial as both sides of the issues are presented, but I think the oil industry is assuming too much, and doing the same mistake as OPEC did in the 70s
Quote:
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Fatih Birol, chief economist of the International Energy Agency said in October 2007 that oil prices will remain high for the foreseeable future due to rapid increases in demand from the rapidly growing economies of India and China.[14] This does not quite align with the fact that prices started climbing in 2003, when no special event took place in either country, but when Iraq was invaded. Then prices doubled again between 2006 and 2008, this time due to speculation, when US trading was allowed to take place through the US-owned ICE Futures exchange in London rather than the NYMEX, thereby escaping US regulatory requirements. |
Price of petroleum - Wikipedia, the free encyclopedia
Recent speculation regulations have been put in place, would that explain the recent decline in oil price ? probably, and that reinforce the idea that current oil price is determined primarily by speculators. China and India got plenty of oil. No shortage on that end.