Oil Spike A Reminder Of 1990 But World Has Changed

Andrew Oswald, an economics professor at Warwick University in Britain, argues that there is no magic answer to predicting prices and that all that really counts is long-term depletion of the world’s resources.

“There’s no killer cutoff price level,” he said. “60 dollars is a problem, partly because it does some damage to the world economy immediately, but more importantly because it means our breathing space is gone,” he said.

He does not subscribe to the idea that greater investment and better-tuned refining capacity will solve the problem.

“Demand will slowly outstrip supply in the oil market, and the long-term outlook is thus going to be expensive for us and particularly our children,” he said
Reuters