2006 to be a rocky year for oil prices?
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Speaking at the World Economic Forum in Davos, Switzerland (I'm sure that Autoblog's invites were
just lost in the mail again this year), Bill Browder of Heritage Capital drew a half-dozen different hypothetical
situations that could send oil as much as 300% higher.
While the doomsday scenario - the fall of the Saudi government - is only the one that results in the jaw-dropping $262/barrel oil prices, there's a variety of other maybe-not-probable-but-certainly-possible events such as civil war in Nigeria, major infrastructure attacks in Iraq, and Venezuelan or Iranian embargoes that could push oil prices near or past the $100/barrel mark. George Soros didn't provide the same type of specific eye-opening numbers, but did state that he is "worried about the supply-demand balance, which is very tight ". Soros claimed that '07 should bring an easing of pressure on oil prices due to additional supply coming on-line.
Reader Comments (Page 1 of 1)
Rene Curry 2:15AM (1/30/2006)
I think any additional supply will be equalized by additional demand in Asia. So the oil industry must fire on all cylinders to even keep the price where it is today. Any unpredictable event could alter this delicate balance, and not for the better.
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Neo 8:52AM (1/30/2006)
Just see what happens to oil prices if an Avian Flu pandemic breaks out. Wonder if that was one of the possible scenarios.
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klaatu 11:00AM (1/30/2006)
Avian flu? Huh. Nothing compared to the fiasco which could await the world if the loony toon in Iran gets nukes and uses them. Or if he gets in a snit and turns off the tap. 25% of the world's oil - not being delivered.
When you depend upon someone else for your life, you "belong" to them. So Western Civilization is "slave" to these lunatics in the middle east, face it.
It's WAY past time we freed ourselves from these idiots and found some other way to power our society, something we should have been working on starting in 1973, not 2006.
IF we can figure out something else, we'll be a position to tell the crazies to eat their oil, since it won't be of any use to anyone. And by the way, a loaf of bread (so to speak) should cost (them) an ounce of Gold (almost $600). Well, they "gouged" us for how long? Turn about is fair play.
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Proud Japanese 11:47AM (1/30/2006)
it's not their fault you americans like to drive such huge fat ass vehicles. and you are taking out on the poor iranian children. so much for your so called moral high ground. starving off innocent children so that you can keep fueling your thirst for gas.
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klaatu 3:05PM (1/30/2006)
Hey, Proud Japanese, I wouldn't talk too "proud" since the same lunatics hate and say they want to kill "anyone who is not their religion" - I haven't heard of many if any muslim Japanese, plus you guys are unfortunate enough to import, what, 90% of your oil? We import 60%. How much rice can you grow on your patio, man?
So I wouldn't get on my high horse, if I were you. Beside, I drive a Prius, personally.
As for the Iranian kids, well, you know what? It won't matter what age they are, If Iran attacks Western Civilization with nukes, about 20 minutes later Iran is going to disappear in a nuke cloud which will be so big it'll make the earth ring like a friggin' bell. Just like the Tsunami did 13 months ago.
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Lee 4:55PM (1/30/2006)
Exxon Mobile recently posted the highest profit of any company ever in US history, thanks to... what else? High gas prices.
All this bullshit about oil supply is just that. Complete bullshit exaggerated as an excuse for oil companies to suck down more money.
But for some reason, people don't seem terribly upset about it...
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lost in hope 10:58AM (1/31/2006)
first let me say you all make valid points but you lack will. Look we are dealing with companies not governments companies. we are the consumer, it is our money they are taking from us.and what are we doing? we are handing it over like school kids giving their lunch money to a bully.
Now all I here everyone out there doing is complaining about how bad it is and who is affected the most. well let me say this. is it not about time for change? when is everyone going to realize that we control what happens not the oil companies. and untill we as a united people across the world stand up and say no to the outragous price increase nothing is going to change. In fact it will probly only get worse. come on we all need to put our differances aside be it british japanese american and stand up to the oil companies and tell them look "you are just a company but as consumers we are not going to tolerate you out ragous profit taking while I barly keep food on the table for my family" supply and demand I thought that was what this is all about am I wrong? if it is about supply and demand should companies like see profits like this or even be aloud to take in such huge profits? what are they going to do with all that money anyways? with epa rules across the world we know that there is no intention to reinvest that money in new production. See like companies like walmart oil companies are all talk and no action.
I conclude my thoughts and wish everyone would think about this and decide what role each of us is going to play.
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