WHEN IT COMES TO OIL, ALL ECONOMIC THEORIES SUCH AS DEMAND AND SUPPLY, FALL BY THE WAY SIDE. TODAY IT IS CLOSE TO $70 A BBL, THE PRICE THE SAUDIS WANT. DEMAND FOR OIL IS FAIRLY LOW, SO HOW DO YOU EXPLAIN THIS HIGH PRICE.
OILS IS BEING BOUGHT AND HOARDED FOR SPECULATIVE PURPOSES, , THIS DATA IS PUBLICLY AVAILABLE. TRADERS IN THIS COMMODITY HAVE KEPT IT HIGH.
THE QUESTIONS TO BE ASKED, HOW MUCH OF THIS SPECULATIVE MONEY BELONGS TO SOVEREIGN WEALTH FUNDS, THESE ARE FUNDS RUN BY FOREIGN GOVERNMENTS.
SO PERHAPS BECAUSE OF THIS THE LAW OF SUPPLY OF DEMAND DEMAND DOES NOT WORK. THE JOE ON THE STREET IS BEING GOUGED BY THE BIG GUYS AS USUAL.
THIS WOULD CRY OUT FOR A GOVERNMENT INVESTIGATION, IT DID NOT HAPPEN IN THE PAST, WILL HAPPEN IT NOW., DON'T HOLD YOUR BREATH.
MORAL OF THE STORY: WHEN IT COMES TO OIL, LAWS OF NATURE, ECONOMICS AND GOVERNMENTS DONT WORK.
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