The Real Story Of Pricey Oil

In March 2005, when a young goldman sachs analyst, Arjun Murti, predicted a doubling in oil prices to $100 a barrel, some compared the projection with the exaggerated forecasts of the technology era. But with oil at $70 a barrel, Murti’s idea doesn’t look bubbly anymore. Now we’re experiencing a different conventional wisdom, one that says high oil prices reflect simple economics and there’s not much anyone can do about it. Demand is rising, supply can’t keep up, so prices rise. But behind the economics lie two powerful political realities that are worth exploring

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