“Regarding oil. The cost of oil was less than $20/barrel before the war. Now it’s about $100. Import from middle east constitutes less than 50% of US supply. Even if some evil forces came to power over there and flatly refused to trade with us, what would happen? Could the price go up 5 times? No way! We could pay double to other oil producers, and buy as much as we needed. And those Arab countries would still have to sell their oil to someone, thus filling demand on the market. The high oil price today is a result of uncertainty. Markets are afraid of another war that could completely cut oil supply from the region, and THAT is the reason for todays prices.”
This is completely absurd. The reason for high oil prices is we peaked production in 05 and have had flat oil production since while china and indias demand has sky rocketted…. Flat supply +higher demand = higher prices
They do publish production and consumption numbers its not that hard to figure out.
We all have to remember our biggest supplier of oil, mexico, wells are declining at an alarming rate(7-10% year) and they will not have oil to export in 5-7 years. That puts all the power in the bad guys hands.
Also, the prices quadrupled with a 4% supply loss in the late 70s
