Don’t look now, but the “oil crisis” could be just about over!
Over the past three days, oil has dropped from a high of nearly $145/barrel to under $130/barrel, an almost 12% drop in just 72 hours! WoW! Maybe now the misguided among us, will stop blaming investors/speculators who merely profit from the fluctuating supply and demand parameters, giving everyone a warning as to shortages in commodities via price increases.
The reasons appear to be two-fold, first, the U.S. which sits on at least 800 BILLION barrels in deposits is beginning to reconsider drilling, at least off its coastlines and very possibly in the oil-rich Bakken Ridge in Montana and secondly, China has begun to stop stockpiling oil, which it had been doing over the past six to eight months in preparation for the upcoming Beijing Olympics.
Today, the dollar surged and the stock market continued its rally.
Commodities analysts have long warned that the oil bubble could burst just as the previous one (1981’s) did, shortly after reaching record highs.
In fact, so many things are stacked against a continuing oil price climb, the U.S. signaling a return to domestic drilling will almost certainly do a lot to reduce futures prices, China’s halting its oil stockpiling for the upcoming Olympics as the Beijing Games approach and Oil exporting nations realizing that sky high oil prices act as an incentive for developed nations to reduce oil consumption and even switch to alternative fuels.
The FACT is that oil remains the most efficient fuel we have and we have it in abundance. The earth’s current reserves would power the planet for at least fifty years, plenty of time for a slow and steady transition to other renewable sources of energy.
Over the past three days, oil has dropped from a high of nearly $145/barrel to under $130/barrel, an almost 12% drop in just 72 hours! WoW! Maybe now the misguided among us, will stop blaming investors/speculators who merely profit from the fluctuating supply and demand parameters, giving everyone a warning as to shortages in commodities via price increases.
The reasons appear to be two-fold, first, the U.S. which sits on at least 800 BILLION barrels in deposits is beginning to reconsider drilling, at least off its coastlines and very possibly in the oil-rich Bakken Ridge in Montana and secondly, China has begun to stop stockpiling oil, which it had been doing over the past six to eight months in preparation for the upcoming Beijing Olympics.
Today, the dollar surged and the stock market continued its rally.
Commodities analysts have long warned that the oil bubble could burst just as the previous one (1981’s) did, shortly after reaching record highs.
In fact, so many things are stacked against a continuing oil price climb, the U.S. signaling a return to domestic drilling will almost certainly do a lot to reduce futures prices, China’s halting its oil stockpiling for the upcoming Olympics as the Beijing Games approach and Oil exporting nations realizing that sky high oil prices act as an incentive for developed nations to reduce oil consumption and even switch to alternative fuels.
The FACT is that oil remains the most efficient fuel we have and we have it in abundance. The earth’s current reserves would power the planet for at least fifty years, plenty of time for a slow and steady transition to other renewable sources of energy.
