Sixty Dollar Oil

Oil hit a record sixty dollars a barrel yesterday, prompting a large sell off on Wall Street. If you haven't already done so, please read my earlier post on "Hubbert's Pimple." After reading it you'll understand why Opec's recent rasing of output quotas haven't made a difference and won't make a difference. Opec's pricing power now only operates in one direction: it can if it chooses create higher oil prices, but it is powerless to lower them. Also see my post on why higher energy prices are necessary, desirable, and inevitable.

Copyright (C) 2005 James Michael Brennan, All Rights Reserved