sickboy
Active Member
I forgot something:
Yes, the perception of increased demand does effect the price. The futures market takes that and the 'speculation' price will fall. But that does not effect the price that OPEC sells us a barrel of Oil, especially when their government budgets are made assuming a certain price....there are no longer market prices, but price tags. They will just supply less to get what they want.
When was the last time someone told you that a year from now we will have MORE oil in the world than we do today? The price will just continue to go up, of course it shouldn't shoot up as much as it had in the last couple years.
Yes, the perception of increased demand does effect the price. The futures market takes that and the 'speculation' price will fall. But that does not effect the price that OPEC sells us a barrel of Oil, especially when their government budgets are made assuming a certain price....there are no longer market prices, but price tags. They will just supply less to get what they want.
When was the last time someone told you that a year from now we will have MORE oil in the world than we do today? The price will just continue to go up, of course it shouldn't shoot up as much as it had in the last couple years.