Interesting View On Oil

"...there is a very convenient way to store oil that is not measured by inventories data: just leave it in the ground!" An interesting theory, but from all the evidence and the sheer age of the supergiants, I'm inclined to think it's another expert opinion, but once again a seriously flawed one.

Once again it seems as though the last place any of these discussions go is to address our easy motoring culture, and our out of control consumption. That's fine. The price will address this issue even if we can't, won't or don't.

clipped from www.ft.com Sky-high oil prices are likely to lead over time to a massive substitution away from oil, even in China. This is what happened after the first two oil shocks. But it will take years for this scenario to materialise. In the meantime, the best explanation of oil prices is neither “bubble” nor “China”, but a “China bubble” – in the sense that speculators and oil producers are gambling on China’s sustaining high prices for ever.