Originally Posted by
seafeye
The high price of oil is partly because our dollar value is becoming a peso.
THAT is probably the biggest reason; institutional investors using commodities such as oil as a hedge against a weak dollar.
Speculation would likely be the second biggest reason.
The price of oil is not even remotely tied to supply-and-demand fundamentals; it hasn't for many months now. Blame Bush, blame China and India, blame the oil companies, blame their shareholders, blame your 401k manager, blame yourself...
blame doesn't matter.
The price of oil will never go down.
Yes, it will. Tech did, housing did, and oil will too..anything not tied to fundamentals always does. That said, I doubt it'll ever again dip below $75-80/bbl. The $64,000 question is when will the oil bubble burst and the substantial drop begin?