Oil’s well, and prices will fall again

DAY by day, the oil price moves remorselessly upwards, inflicting pain on every household and motorist. The same barrel of crude that sold for $65 in 2007 is now $135 and might soon cost $200.

But across the world, 86 million barrels of oil are produced every day, which at the moment is sufficient – not least because consumption in America, which burns a quarter of the world’s supply every day, is actually declining.

Alarmists also say that the world’s oil supplies have passed their “peak”, that the world has consumed half of all its oil and that the remaining one trillion barrels will be gone by 2025.

This is quite simply tosh.

News.com.AU