tag:blogger.com,1999:blog-14434437.post393597739811381355..comments2023-10-29T02:06:24.194-06:00Comments on Status Quo Must GO: Talk of $100 oil -- again?MBhttp://www.blogger.com/profile/13376297905063624827noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-14434437.post-58128370711940241202007-10-19T09:03:00.000-06:002007-10-19T09:03:00.000-06:00Very true. The dollar depreciation has a lot to d...Very true. The dollar depreciation has a lot to do with it. There are as many theories about how the price of oil will go post peak (generally there's agreement that there will be lots of spikes and troughs as the price becomes a lot more sensitive to global issues since the Saudi Arabian 'cushion' is now gone) as there are theorists.<BR/><BR/>As well, with the rise of China and India, the US is not going to be looked at as the no. 1 consumer society for much longer, and when that playing card is gone, I don't think the U.S. is going to fare so well either. Why ship the goods to a nation that has a devalued currency and bankrupt populace, when you can sell the same goods to people in your own country? <BR/><BR/>Strange times immediately ahead....MBhttps://www.blogger.com/profile/13376297905063624827noreply@blogger.comtag:blogger.com,1999:blog-14434437.post-19451610851222704762007-10-18T12:53:00.000-06:002007-10-18T12:53:00.000-06:00A lot of the market turmoil right now is related t...A lot of the market turmoil right now is related to the mortgage issues in the US, which has led to the Fed reducing interest rates which has led the US dollar going into the toilet. <BR/>Oil is priced in US$’s so US$87/barrel is not really a meteoric rise if you take into account dollar depreciation.<BR/><BR/>Regardless, the price is high and supply concerns and not unfounded – though most likely blown out of proportion given that there are just too many people who benefit when the price is high. <BR/><BR/>The really insanity is what is going to happen to the oil market over the next couple of years. Is the US$ going to remain the world standard? Right now the US essentially gets their oil for free so changing the standard is going to have a massive effect on the US coffers.Anonymousnoreply@blogger.com