Quote:
Originally Posted by csp97
It's big because it's never happened before. In the past, high demand, high prices, good economy = more oil production. This is a whole new ballgame.
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It has nothing to do with "peak oil" or any other doomsday scenario. The global economy is currently in a cooling-off period and hydrocarbon production follows the economy. In short, it's all based on demand and the ability to meet demand is in itsself, significantly affected by global refining capacity.
One more thing. A HUGE part of the current BBL price of oil is driven by
speculation on the disruption of supply. Today's high came on the bombings in Afghanistan. Tell me: How much oil comes from Afghanistan ?