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To: TChris
Current fuel prices are not the result of Middle Eastern oil supplies nearly so much as they are the result of the shortage of refining capacity in the USA. Nonsense. Current fuel prices have to do squarely with increased worldwide demand, most notably from China.
57 posted on 08/31/2005 2:30:41 PM PDT by paulcox1978
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To: paulcox1978
Nonsense.

First, the US only buys about 10% of its crude from the ME, the balance comes from Mexico, Venezuela, Russia, etc.. But all the crude in the world does no good when you can't refine it. China's demand has not increased dramatically in the last year or two, and world supply levels haven't changed that much either. How do you account for fuel price increases of %60 or more when the supply/demand for crude has only changed in the single digits?

58 posted on 08/31/2005 3:00:57 PM PDT by TChris ("The central issue is America's credibility and will to prevail" - Goh Chok Tong)
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To: paulcox1978
Current fuel prices have to do squarely with increased worldwide demand, most notably from China.

Worldwide demand for oil has increased around 5% in the last two years. During that same time, the price of oil has doubled. Anything about that seem strange to you?

From Forbes: (He's a right winger)
Mr Forbes, editor-in-chief of the influential Forbes business magazine, said inflation and increased demand from China and India only accounted for a small part of the price raise from $US25 to $US30 a barrel three years ago.

"The rest of it is sheer bubble speculation," Mr Forbes said in Sydney at the launch of a business conference.

"I'll be blunt, there's hardly a hedge fund in North America that hasn't speculated on oil futures.

Oil Bubble to Burst:Forbes

64 posted on 08/31/2005 8:03:17 PM PDT by Mase
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