Consumer affairs article - June 29th

[mrflash818]

 What’s Really Fueling Those Sky-High Oil Prices

Excerpts:

Ask any number of experts about what’s causing the current run-up in oil prices, now around $140 a barrel, and you’re likely to get several different answers.
 ....
 

Comments

[theheretic]

$145.22/bbl today. Up $5 for the week. Expect EVER HIGHER prices. Joy.

[albionwood]

Something on that Web page slowed my computer to a crawl until I closed that tab.

The one thing that really caught my eye was this statement:
Going forward, Mike believes eventually that global oil demand is going to weaken and that we’ll see an increase in spare capacity, which should dampen prices considerably, especially as OPEC expands production capacity.1. What will cause global demand to weaken? High prices? Global recession? Sounds like he is predicting the collapse

[evilref]

There is a saying: the man who has one watch knows what the time is. The one who has two is not sure.

The same goes for economic models. When the analysts are offering six different explanations for something like oil prices, it means they don't have a clue.

Unfortunately although economic models are (moderately) good at predicting market behaviour in normal circumstances, these are not normal circumstances.

Eventually the models will be adjusted, and the analysts will realise the truth. Then we can expect a proper recession.

Yager again?

[peebeebaynut]

Oh, please--writing articles like this is Yager's job and that job is getting harder and harder to do.

He now has to prattle on for pages with lists of little events here and there in an effort to explain this: