djbombscare said:Totally agree.
From what i had heard just before Katrina. They were saying that it was looking like what happened in the 70's and that this was not a permant state. And that what would happen would be that people will switch away from carbon fuels. I'd also heard that demand would now decrease as the US holiday period is now over. However I dunno how long the US holiday period is but this has been going on longer than this summer.
US holiday period ends in late August - pretty much Labor Day.
Anyway, the end of US holiday season isn't that big a thing... demand is lower - yes. But for a long time now, oil producing countries would just stockpile in quiet periods to let loose in the busy ones. Seasonal rational expectations. Unfortunately, this season has been extra bad!
My guess on where oil price relief will come from is a slowdown of Economics growth in China - caused by the simple fact that commodity prices have soared - I mean soared - for years now... eventually it'll kick in - even if it is via inflation eroding growth...





