Wednesday, March 2, 2011

Perfect Storm Revisited: Spike in Price of Oil

This was written in October, 2010, regarding the "perfect storm" for a spike in oil prices.

Today, we learn that supplies of domestic oil dropped a bit, despite analysts expecting an increase in supply.

Interesting.

After a significant surge in oil prices the past two weeks, oil is up a bit again today. The price appears to be quite volatile, moving between an increase of 70 cents and $1.14.

Prices of shares in Bakken market basket and blue chip oil and oil service companies are mixed, but slightly more green than red.

It should be noted that In 2008, while the head of the Lawrence Berkeley National Laboratory in California, Steven Chu, the administration's energy secretary, told The Wall Street Journal that energy prices were the lynchpin to an energy overhaul.

The dots are easy to connect.

6 comments:

  1. King Abdullah isn't stomping unrest as he is bribing it.

    ReplyDelete
  2. Point well taken. There are many ways to prevent conflict. The western world also uses money to prevent unrest.

    Having said that, my hunch is if "push comes to shove," bribes will take a backseat to a heavier hand.

    ReplyDelete
  3. Agreed. Especially with the pushing and the shoving.

    ReplyDelete
  4. Some connected dots (aka a curve)
    The recent *40 year* trend is plain to see.
    Domestic e@p companies need high priced crude
    to justify north American e&p. The. Govt really does not have any levers to pull to turn this around.

    http://www.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=a

    ReplyDelete
  5. Thank you. Sorry for late reply; I was at school all day; just getting home.

    This $2.60 increase in price of oil is interesting, and surprising. And frustrating. Not good for overall economy.

    ReplyDelete
  6. Thank you. I am way behind; so will do better with reply later but we are on same wavelength. This is getting very interesting, and unfortunately I think much of it (high-priced oil) is self-inflicted.

    ReplyDelete