Wednesday, July 16, 2008
June Oil prices, a revisitation of my oil price post...
In my earlier post on oil prices, I pointed out that oil prices were on track to reach another 6% monthly increase in price, or to roughly $133. The actual average price for oil in June reached $133.93, an increase of 6.8% over May's average price. So far this month we appear to be on track for another significant price increase. Oil prices are presently around $137 a barrel but have been as high as $145+ earlier this month. This illustrates some speculative volatility in the market, but the overall trend remains up in the face of supply declines, and continued worldwide demand growth.
Given the insatiable need for oil in the modern market economy, it is dificult to envision anything other than a steady climb upward for oil prices. Only a major world wide economic depression, would appear to have the necessary sting to significantly decrease oil prices, and in the event of that most people would probably have far more pressing concerns.
As Samuel L. said in Jurassic Park, "Hold on to your butts." We are in for a rough landing.
Given the insatiable need for oil in the modern market economy, it is dificult to envision anything other than a steady climb upward for oil prices. Only a major world wide economic depression, would appear to have the necessary sting to significantly decrease oil prices, and in the event of that most people would probably have far more pressing concerns.
As Samuel L. said in Jurassic Park, "Hold on to your butts." We are in for a rough landing.
