Comments on: Price of Oil Doesn’t Appear to be Affecting Worldwide Demand http://www.dailyreckoning.com.au/price-of-oil-2/2008/02/06/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Saildog http://www.dailyreckoning.com.au/price-of-oil-2/2008/02/06/comment-page-1/#comment-6624 Saildog Wed, 06 Feb 2008 07:42:56 +0000 http://www.dailyreckoning.com.au/price-of-oil-2/2008/02/06/#comment-6624 A good analysis, but may be it is all a whole lot more simple. Oil supply is completely inelastic and what ever is available will be taken at any price - up to a point. It seems that $90 is that price (for the present). Lots of people in Afica and a few other places have quietly dropped out of the bidding (and the age of oil). When the next lurch upwards will be and what the precise cause is I have no idea, but it will happen sometime in the next few months and years. A good analysis, but may be it is all a whole lot more simple.

Oil supply is completely inelastic and what ever is available will be taken at any price - up to a point. It seems that $90 is that price (for the present). Lots of people in Afica and a few other places have quietly dropped out of the bidding (and the age of oil).

When the next lurch upwards will be and what the precise cause is I have no idea, but it will happen sometime in the next few months and years.

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