why would a cartel that dictated prices allow this to happen? Why would they eve let the prices go down? Why wouldn't they constantly raise them?
Why does a Chinese economic boom translate into higher oil prices? Are Chinese citizens buying more cars? Driving that much more? Is China demanding crude to feed its thriving petrochemical plants? When did THAT industry come into being in China? I'm sorry, but the only way I can buy the Chinese demand explanation is to believe that China is buying up reserves against a day when they want to go to war. And if they were going to do that, I would have thought it made more sense to buy it at $30 a barrel rather than $55.
why did they wait until now to raise prices, why didn't they raise them 10 years ago?
They have been raising prices by fits and starts for the past 30 years. It wasn't all that long ago that I shuddered at $1.20-a-gallon gas. And 10 years ago, gas over $1 a gallon wasn't common. So the answer is, they DIDN'T wait until now to raise prices; they DID raise them 10 years ago. And 5 years ago. And 1 year ago. And last week.
And nobody has offered a believable explanation. Some pretty transparent excuses, sure. But nothing that stands up to scrutiny.
Increased demand.
Are Chinese citizens buying more cars?
Yes.
Driving that much more?
Yes.
Is China demanding crude to feed its thriving petrochemical plants?
Yes
When did THAT industry come into being in China?
Recently.
I'm sorry, but the only way I can buy the Chinese demand explanation is to believe that China is buying up reserves against a day when they want to go to war.
Well, they are also buying excess reserves as well.
And if they were going to do that, I would have thought it made more sense to buy it at $30 a barrel rather than $55.
The price of oil is the price of oil. If there was no economic boom, then oil wouldn't be so high, but then China wouldn't have the dough to buy oil at these prices.
They have been raising prices by fits and starts for the past 30 years. It wasn't all that long ago that I shuddered at $1.20-a-gallon gas. And 10 years ago, gas over $1 a gallon wasn't common. So the answer is, they DIDN'T wait until now to raise prices; they DID raise them 10 years ago. And 5 years ago. And 1 year ago. And last week.
That's just not true. Adjsuted for inflation, gas prices have been going up and down for the last 30 years. If they had total control over prices, you would have seen a constant increase over the last 30 years, which is not the case.
And nobody has offered a believable explanation.
It's called supply and demand.
why would a cartel that dictated prices allow this to happen? Why would they eve let the prices go down? Why wouldn't they constantly raise them?