Why $140/Barrel Crude is Unsustainable (at Seeking Alpha)

yahoo.com Jul 9, 2008

by: Rabinder Sekhon posted on: July 09, 2008 | about stocks: click to enlarge image (graph courtesy of wtrg.com) Despite the hand wringing about crude prices, there is plenty of evidence to suggest a top forming and prices headed in one direction --- down. The basic economic principle, which has stood the test of time and applies to this day, is that supply rises in response to prices while demand has an inverse relationship to prices. Following the 1973 oil embargo, prices, which earlier had been at a nominal $20 a barrel since the twenties (in 2007 dollars), tripled and seven years later, following the overthrow of the Shah, hit almost $70 a barrel. By turning down thermostats, using better home insulation, driving slower and buying smaller more fuel efficient cars, Americans conserved energy and consumption crashed. In the... [read full story]

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(anonymous) - Jul 11, 2008 8:52:33 PM

We should leave Iran an honorable path of retreat. Engaging Iran in the global economy is the only approach that has merit. Regardless of Iran's size however, we should be careful what we assume about Iran; it has some ten million men of military age. Puor bien savoir les choses, il en faut savoir le detail, et comme il est presque infini, nos connaissances sont toujours superficielles et imparfaites. Unfortunately, what we do know is that the Bush administration cannot be trusted to do what it says. Iraq taught us that lesson. Many experts have long been predicting that Bush would invade Iran before he leaves office. But of course, the Bush administration would never admit to such a thing. “On ne donne rien si liberalement que ses conseils.” But it is the man who follows his own counsel, he’s the one that should lead.

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