This is a couple of weeks old, but still illustrative of the reasons behind the high cost of oil today.
Josh Landis and Mitch Butler of the "Fast Draw" team take a close look at what determines the price of oil and the impact price fluctuations have on the overall U.S. economy. (CBSNews.com)
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Thursday, May 01, 2008
Why Oil is So High
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2 comments:
While some of this presentation has some validity, there is so much that is wrong with the analysis of the Perky Ones guests. Rising global oil demand, dismissed at the outset, IS a major factor affecting the price of oil. Just pick up the latest issue of National Geographic. Flip to page 172.
While the Fast Draw boys are correct that the falling value of the dollar is also a factor and speculators play a role, they miss the bigger picture. Totally.
We are at war. War against radical islamists. Our currency and economy are under attack. There has been discussion among OPEC countries to price oil in Euros rather than dollars. Billionaire currency speculators that dislike America play a role in damaging our finances. Don't forget the eco-extremists, with aid from foreign oil interests, that have the ear of our elected officials and insist on NOT developing the oil resources the US has in ANWAR and off shore.
The U.S. has the largest economy in the world. With a weak dollar, why would investors pass up the opportunity to use their purchasing power to buy American assets and products.
Ultimately, the higher price of oil will have much more of an effect on China and India than it will on the U.S.
You have many excellent points, Leland, and I agree with them.
This analysis presented by the Perky One was rather narrow. I posted this video because, while it left a lot out, the value of the dollar is still a factor that is seldom heard in discussion of oil prices.
95% of the time all we hear about is "those evil, greedy oil companies."
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