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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (303018)	9/13/2006 3:38:23 PM
From: tejek	Read Replies (1) \| Respond to of 1575725

Adding to the effect is the Peak Oil theory. I bet you haven't heard that one. Of course I've heard that one. And it's probably true. But when does it truly start affecting oil supply? Not for quite a while. So with business and government leaders who at least try to manage the hysteria rather than encouraging it, I think we'd find oil prices lower. But alas, that isn't the case... Z, you keep trying to equate current pricing with the current supply of oil. That's only part of the consideration when determining the price of oil. Peak oil is also part of the consideration and that's because if the theory is correct and peak production of oil is almost upon us.....them that means at some future point supply will start trailing demand. Since we know that that's likely to happen sooner rather than later, that makes oil a diminishing commodity and current oil more valuable than if there were no restraints on future production.....that whole notion is factored into the current price. In other words, oil traders take into consideration what future supply and demand will be when determining today's price of oil.