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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?


To: Brumar89 who wrote (1770)8/19/2008 11:26:15 AM
From: Thomas A Watson  Read Replies (2) | Respond to of 86356
 
When oil supply and demand are closely matched, then FUD can be at the max component of price. The head of Exon stated the belief that the true cost of a barrel of oil is $50. I have no reason to doubt his estimate. That would imply a small change in the balance of supply and demand can have a huge effect on the FUD price component of the cost of oil.