For some context and analysis, see
http://www.nytimes.com/2008/05/12/op...hp&oref=slogin

It is my view that the price of oil is where its at because those who have the most oil are realizing that their oil is much more valuable in the ground than being sold at fire sale prices to the US which will simple burn it as if burning hundred dollar bills.

So, what's your view?

I think Krugman does have some valuable things to say. Good article Mulp.

Here's what I 'got.'

Supply and demand is all fine and dandy, and yes, China is becoming a bigger consumer of oil but what Krugman does miss here is the ME oil cartel of OPEC. OPEC sets production---prices, and the rest of the market basically follows. The oil, energy producing countries of South America are trying to organize into a cartel also so to wield this type of power.

Remember when Mr. Bush met with the Saudis just recently? He begged them to raise production to help the US out. They basically laughed in his face. One of the biggest underlying factors in terms of oil production and open market 'worth' is the fact that a long, ongoing war in Iraq still exists. There is no better excuse for high prices of a specific commodity than war. Oil is essential and oil is the commidity of the ME, Iraq sits squarely in the middle of those oil producing fields/countries. It is no surprise that oil has gone through the roof during the years since the invasion of Iraq in 2003. Dick Cheney (et al) truly fooled himself into thinking Chalabi was right and the invasion would create no mess; the oil fields would be safe and in control by friendly allies. It just has not worked out this way at all, it was not going to. Notice that Clinton never took on a task of invading Iraq or any ME country this way, the price of oil never rose this quickly during his 8 years in office...he knew the realities of starting a war over there and how it would be linked to the U.S. dependence on oil.

Ill tell you I dont an most I know dont belive for a second that this increasin in prices or any increasse ever for that matter has been A "natural" market occuracne. Its gouging and artfical infaltion.

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Cussing out low class inbreds isnt uninteligent, its honest

Good typing is not inteligent its dexiteritous.

Everything you just said is total bullshit

Patriotism is the last refuge of a scoundrel.

http://www.youtube.com/watch?v=-V8Ek...eature=related

I agree to an extent. It makes sense for the Saudis and others to cut supply, which they are doing.

Schumer also called the Saudis out for cutting supply. He said that was part of the reason for the prices.

War is part of the reason Cat, if you think it is the primary reason you aren't really looking very deeply into it.

Again, I added into Krugman's commentary; I provided what he missed. If there was not a war oil would be less, how more less I cannot tell you exactly.

I think oil and a few other industries have proven that with such a heavy influence in the government they can have complete and total chaotic reign over entire populaces. These oil men are the same as the arms manufacturers, corrupt to the core but large and in charge.
That being said, free trade generally is a brilliant idea internally. I believe heavily in import taxes, though, thats just good mercantilism.
Having complete control of an industry via trusts (collective monopolies) makes you a threat to free trade when the product you are selling is essential to our lifestyle. Food, water, energy, weapons and communications.

I bet that's what you said to your parents when they wouldn't give you as much money as you wanted, telling you "its my money, I worked hard for it, go work for your own money."

Anyone who thinks that the Saudi should price their oil for less and pump more to make sure the price never goes higher than that set price is part of the conservatives "we deserve free lunch" crowd.

OPEC had profits of $674 Billion in 2007.
OPEC donated $50,000 in charity in 2007.

OPEC needs to be hit with a windfall profit tax.
OPEC needs to buy carbon credits that offset all carbon released by their oil production and use of their oil around the world.

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Drill offshore now

Better to invoke economic sanctions against them, a worldwide boycott on buying oil.

Force them to switching to harvesting the sun.