“…we’re living in a world in which oil prices keep setting records, in which the idea that global oil production will soon peak is rapidly moving from fringe belief to mainstream assumption.” — Paul Krguman New York Times OP-ED columnist
“The Oil Bubble: Set to Burst?” That was the headline of an October 2004 article in National Review, which argued that oil prices, then $50 a barrel, would soon collapse.
Ten months later, oil was selling for $70 a barrel. “It’s a huge bubble,” declared Steve Forbes, the publisher, who warned that the coming crash in oil prices would make the popping of the technology bubble “look like a picnic.”
All through oil’s five-year price surge, which has taken it from $25 a barrel to last week’s close above $125, there have been many voices declaring that it’s all a bubble, unsupported by the fundamentals of supply and demand.
Two days later he writes a second opinion piece this time he says:
“…we’re living in a world in which oil prices keep setting records, in which the idea that global oil production will soon peak is rapidly moving from fringe belief to mainstream assumption.”
“Any serious reduction in American driving will require more than this — it will mean changing how and where many of us live.”
I’ve been hearing a lot of bemoaning that the current high oil price is just speculation in the market. Any other reason so long as we don’t mention supply and demand - Justin
