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> I think we will push through $100 a barrel on oil not so
much because of demand but simply to have done it and I also believe that the
actual supply and demand of the product puts a price of around $75 per barrel on
it with the rest being speculation.The Arabs are planning on oil settling at
around $60 short term and $40 long term and have built these numbers into their
economic models.
The Saudi's keep saying they have reserves and will pump more oil
however it has not been forthcoming. My reading leaves me to believe that they
are not pumping it because they don't have it to pump. Majority of oil is now in
hands of national oil companies which are driven more by politics than
efficiency and preservation of reserves. In many cases, established fields are
being depleted due to poor practices. Shortages are global. I think a global
slow-down/recession will provide some temporary relief but the days of $60 and
$40 per barrel oil are gone.
Earl
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