Oil is around $55 a barrel, which is what I predicted for the end of 2006, I was off by a couple of days.
OPEC threatens to cut production. Surprise. I still say that $60 a barrel is 1) not realistic due to the fact that it will be hundreds of years before oil supply is really threatened, plenty to go around and 2) not sustainable on the world market for too long.
They are building a top heavy house with their policies. Now it is good in some ways because we do not want the prices to just crash. Give the market a little time to diversify their investments and gently ease the prices down to about $35 a barrel, which would be a reasonable price.
Unfortunately we know that would be bad for alternative energy. Why? because the general public will be able to drive their vehicles rather cheaply again and will use the extra money to buy fast food rather than pay off their bills. Due to that, not as many politicians will continue to push for a more expensive in the short term solution to the problem of dependence on oil imports.
In other news, it is going to be almost 80 degrees in NC this Saturday. Time to dust off the Carolina Rollergirls tight tank top and my soccer short.
|technorati tags: alternative energy, energy, Wal-mart, Iran, politics, OPEC, oil|