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| Economy |
| Oil price bubble |
| 2011-04-03 |
| Why have petroleum prices soared so high so fast? Presently we are seeing the highest spot price for crude oil ever in the month of March. Is it because there is a decreasing supply of oil coming onto the world market? ...No, it seems the real reason oil prices have risen so much is because we, the American people, gave hundreds of billions of dollars to banks that then turned around and put our billions into investments in oil and other commodities funds rather than making loans to businesses. |
| Posted by:g(r)omgoru |
| #6 there is a non zero chance of a major disruption to the Saudi fields and lately that non zero chance is relatively greater than usual The Shiites, encouraged by Iran? |
| Posted by: trailing wife 2011-04-03 23:31 |
| #5 rather than making loans to businesses Businesses have not really been beating doors down to ask for loans in the first place. |
| Posted by: Pappy 2011-04-03 22:47 |
| #4 Dollars devalued by printing too many. This. Plus, of course, the present stock market bubble, the unstable state of all the developed world's fiat currencies, the forthcoming bond meltdown, the ongoing real estate de-leveraging, speculation on a real recovery in at least the BRIC nations, etc. Some one will always want your oil, not so much your mortgage, munis or overvalued equities. |
| Posted by: AzCat 2011-04-03 22:23 |
| #3 Dollars devalued by printing too many. |
| Posted by: Glenmore 2011-04-03 19:55 |
| #2 Too many dollars chasing too few barrels of oil, with very few worthwhile investments to be had. |
| Posted by: Anguper Hupomosing9418 2011-04-03 18:01 |
| #1 actually, because of Libya, the world oil supply is a bit down from a few months ago however, the reason for the high price the past 30 days or so is generally thought to be because of a risk premium; that is, there is a non zero chance of a major disruption to the Saudi fields and lately that non zero chance is relatively greater than usual |
| Posted by: lord garth 2011-04-03 17:46 |