Originally Posted by
nicholasblonde
The Saudis are increasing capacity and efficiency, and one of the 2nd largest deposits in the world was recently discovered off the coast of Brazil (being developed by BNP Petrobas). Hopefully oil prices will come down this year.
Discover oil is only part of the process. You have to be able to drill for it, tanker it, refine it, and deliver JET A/Gas ect.....Until the entire energy lifecycle is addressed, don't ecpect major downward movement. Not to mention the traders on Wall Street who "speculate" and are able to keep prices high. Remember the cost of a barrel of oil is still somewhere in the $40 range. But the traders have been able to speculate that demand is outpacing supply and therefore we have $100 oil. I think prices will go higher before they ever get lower.