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A question.  If prices even started getting close to 300$/bbl, what is the likelihood that governments would try and institute rationing in order to control prices?

The mechanisms for rationing are an entirely different matter of course - a bureaucrat gets to decide who gets the oil instead of the market, but by artificially forcing the demand down, the prices for what you could get would still be affordable.

Then again the oil companies would have phenomenal profits with prices at these levels, and given who runs the country, it seems unlikely that rationing would be instituted.

If oil were really 300$/bbl, I could see either a recession or runaway inflation.  Not sure which right now - right now this is just a sort of a thought experiment for me...

by ericy on Thu Aug 18th, 2005 at 10:02:21 PM EST

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