by Kylon » Sun 08 Oct 2006, 00:58:27
The political realities right now allow for cheap oil/gas.
The fact of the matter, is that oil prices being low have the cards stacked against them.
The main reason that gas/oil is low right now is
A) Summer driving/vacation season is over.
B) Political tensions in the Middle East are over.
C) The heating oil crisis hasn't swept into gear.
D) Market flucuations.
There are more variables at work, but these are the main/easy to understand/identify ones at work.
Now, the Summer driving season being over has reduced prices and its toll on prices will be over.
However, the Winter will cause an increase in the use of heating oil, which in turn take up a large amount of oil, raising prices.
The political stability in the Middle East has led to some price stability, but this isn't going to last long. Akmajedhad or however you say his name, and Hugo Chavez, need Oil prices high, in order to pay for their socialist programs. If the price of oil drops, and they aren't pulling in enough revenue, then they won't be able to provide bread and circuses to their people. Once that happens, their people will throw them out.
So it's in their best interest to provoke as much trouble as possible, and create as much choas/tension fear as possible and insecurity about oil supply, in order to drive the price of oil up, thereby stabilizing their power in their countries.
About market flucuations, market flucuations go both ways, they drive the price of oil up during hard times, and down during percieved good times.
Those are a few of the main reasons.