Replies to post #308587 on Zeev's Turnips Patch-No Politics (ZEEV)

[Newly2b]

I find his suggestion of selling oil from the strategic reserves to keep OPEC prices "reasonable" a bit naive. He says, "Under this arrangement, consumers would buy oil for their reserves to avoid declines below the floor price and sell from their reserves if the price goes above the ceiling. The resultant stabilisation [sic] of oil prices would help both the producers and the consumers."

I seem to recall that selling all the gold buyers wanted at $35/oz in order to "stabilize" the gold price at that level did not end well (with the slamming shut of the "gold window", albeit, long after the horse had left the barn). This strategy for stabilizing oil prices IMO would likely suffer a similar fate.

Everything seeks its natural level through market forces, no matter how hard individuals and/or governments try to subvert the process.

Newly

[otraque]

Here is another case for doomers:), IEA, that totally but totally missed predicting this demand increase and were saying all was perfect going into 2004 and seeing crude price falling, have now stated demand for oil will slow down starting with the beginning of 2005.
I remain fixed on BPs projection that demand will grow at twice the growth in supply over the next 5 years.