Explaining the ups and downs of the price of oil requires either a PhD and/or an ability to craft a good story. The French institute Enerdata has found another factor that anyone who wants to tell the full tale should take note of: CO2 regulations can affect global oil prices. Perhaps someone should tell the EPA.

Enerdata calculated that the 2012 European CO2 standards will drop global consumption by 0.9 percent. In turn, this will result in a 1.2 percent drop in oil prices, Enerdata says. The trick is going to be whether this downturn will, in turn, increase demand. That's what we're taught, right, that lower prices can stimulate demand? If fuel is cheaper, people might drive more, even if they're doing so in cleaner cars. Therefore, the question becomes: what impact will the increasingly strict European carbon dioxide regulations have? Get more details over at Green Car Congress.

[Source: Green Car Congress]
Photo by [JP] Corrêa Carvalho. Licensed under Creative Commons license 2.0.

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