Quote:
Originally Posted by Fundguy1
True but the run up in '08 was mostly due to perception. There was a refinery fire, hurricanes, and a short term shortage. Speculators ran up the price. Then bush relessed the reserves and it dropped. Domestic production is up because of the fracking i listed above. Not because obama wanted it up.
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Speculation is the only answer that fits for me. At the time they blamed it on consumption/transportation increases in China and India. However stock prices for the industrial supply of oil consuming and oil supply industries did not have a similar jump in price years a head for lead time. Oil consumption increases at a level that basically increased the barrel price by 100% has to have precursors such as oil rigging surges, road building increases, tanker ship building, refinery building and expansion. To my knowledge, none of that occurred; oil just somehow became more popular to consume.