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This has all the appearance of a bubble

Sure it's a speculative bubble - hedge fund money has to go somewhere - but that's only part of the story. A significant piece of the price rise is due to the decline in the dollar.

This will be followed by development of the oil resources and, eventually, an oil glut.

This is wishful thinking, IMHO: you can forget oil gluts. Ever.

Sure the price will come off once the bubble is pricked, but in the medium and long term US demand is only a relatively small part of the big picture.

While I see the growth in Chinese and Indian demand slackening in a global recession, that's all it will do - their demand will continue to rise, but at a slower rate.

Any increased Iraqi production will only help to replace declining production in the mega fields elsewhere.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Wed Nov 7th, 2007 at 11:01:00 AM EST
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