Monday, October 06, 2008

Peak Oil right?

Oil below US$90 a barrel according to CNN.

It's basic economics. The US, European and Japanese economies are stagnant, demand for oil has dropped as the high price suppresses demand globally, demand for Chinese exports has dropped, reducing economic growth there. So with less demand for oil, the price drops. Those hurt now are those, such as some airlines, who hedged jetfuel prices to be getting higher.

Inflation drops, and relief appears for motorised transport users.

The oil age wont end due to a lack of oil. It also doesn't need anyone thieving more of your money to subsidise alternatives.

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