The Oil Drum: Discussing Prices and Demand

Over on Econbrowser there is a discussion going on relating to the Hirsch report, which we last discussed here. It is very much an economist’s discussion, but contains within it the continued question as to why, if the supply of oil in the world is drying up, haven’t we seen higher prices than we currently are. This applies both to current, and, more particularly, futures prices.

Well the times they are a changin’. As was pointed out, future prices for oil are now heading steadily up there. And as the season moves on the price of oil is moving with it. My own belief is that Hirsch was really more interested in proving that if we did not do something to enhance supply, starting fairly soon, we would be in deep trouble….

A lot more details after the jump at The Oil Drum.