so, long term, I think crude oil is going to get ugly...
I have been thinking along these lines myself. Other considerations to think about...
1. Many of these oil producers are countries with high debt, rising populations, and due to "open market conditions" , [either IMF imposed, or by their own choosing], their own economies and political systems are in a state of disaster, [more like, virtual collapse, but who is arguing small details <g>].
2. However, in many instances, their "Local Supremos", [for the time being], are people educated in US and European Universities. They realize that oil may be, their one chance to get some sort of financial stability, and or, they view oil as the source to pay for badly needed improvements to their local infrastructures and/or social needs. They seem to be showing a good display of organizational skills and solidarity, since OPEC seems to be succeeding in sticking to specific production quotas. In the past, this has caused production levels to be increased with a resulting price pressure eased.
The above, adds to the scenario that you indicated in which world oil consumption continues o rise.
Can this finally push inflation in the US to a level that no internut.bomb mania/mindset will be capable to overcome?
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btw. Great thread, thanks for the knowledge found here. |
