I don't know why I watch the price of oil so closely. Perhaps it is because I'm the owner of a gas guzzling pickup truck and I have become more aware of the rise as the gas pump prices and total price of a tank of gas increase. As I've watched this run up in oil prices, I've wondered if we would ever get there...you know, $100 per barrel oil. In this article, several explanations are provided that show why we will likely get there and why our demand may not really support a price for oil that high.
Some analysts suggest that it is simply a matter of global demand increasing, and supplies throughout the world tightening, but I don't think that is the case because the article states that "the Energy Dept. reported Oct. 17 that inventories of crude and gasoline rose more than analysts had expected."
Some analysts suggest that the price is spiking in anticipation of future events that may disrupt supplies, tightening the supply. Perhaps....
Others feel that hedge funds and other institutional investors are simply chasing profits by buying oil futures in hopes that the price would shoot through the roof.
Whatever the reason, I feel deep down that we will probably see a cutback in the demand for oil and gas in the future and hopefully that will bring our prices back to a more reasonable level.
Whatever happens, Kade is looking a lot smarter driving the moped to school and work as the price looks as if it will increase to new record levels.