Monday, June 20, 2005
The end is coming
Crude oil is heading from 60 dollars a barrel . What in the world can we do. Well nothing really the over reliance on petol in this world means that this is just the tip of the iceberg remember not so long ago people were hearlding the day of the 50 dollar barrel. Now people whould gladly take it. So what is causing this massive rise in price. Is it the emerging market in china. Well i think that has something to do with it . Not a lot though if you look at this graph from bbc. The price has steadly increased and is not far off having doubled in price. Has china used that much extra fuel in that amount of time i don't think so . The rise in my opinion (me not being an economists means my opinion is utterly worthless) is due to investors buying up stocks of oil to make a profit. I mean if you bought 35 dollars last year you now can sell from around 60. Not a bad trade. The current reason seems to stem from trouble in nigeria as the consulates of various countries are closed and fears of hurricanes in america. So what can be done. I don't know much about the econimics of oil to come up with a solution but i think we all have to bow are heads in shame and admit that the tree hugging hippies and there proficcies of doomed and there calles for hydrogen cars were right.
Posted by Simon at 6/20/2005 09:14:00 am
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