Originally posted by HimWhoHathAnEar
The rise in the price of oil is tied directly to fiat currencies. Supply/demand is only a secondary concern.
Yes. Also the devaluation of the dollar is another contributing factor. In general it is extremely complicated. There are alot of factors. Not to
mention geopolitics on top of all the confusing numbers.
All the experts and economic analysts are all saying different things. Some are saying we shouldn't worry, some are saying we should. The point is
that noone really knows what's going on right now. Everything is mostly guesswork based on historical economic data, projections of what will happen
geopolitically, short term projections of production from the oil companies, etc..etc..etc... Not to mention each expert's own interpretations and
opinions of the geopolitical situation and the global economy in general. This news story below from the NY times states fuel prices will hit $7 a
gallon in more or less 4 years. But noone knows for sure...:
www.nytimes.com...
Regardless of all the price-determining factors, the rise of oil prices is simply normal if you take into account oil prices since the nineties.
Also, ever since 2007 oil prices have just skyrocketed and the rate of increase is also increasing. The chart illustrates this rather well.
Especially the short-term chart.
This is extremely interesting (at least to me):
This chart is from wikipedia.com here:
en.wikipedia.org...
And this one which shows oil prices 2006-2008 (short term)
If prices continue to rise at the current rate, as I said before, gas will hit $7 a gallon in 2 years not 4. I'm not an economics expert or anything
but that's just simple math. You can see my thread about this in my last post.
-ChriS
[edit on 16-5-2008 by BlasteR]