The $41.22-per-barrel price is at itssince the New York Mercantile Exchange launched the contract. The last major spike occurred during the Iranian revolution in which the adjusted-for-inflation price was $78-per-barrel. In explaining what has caused the prices to continue to climb, Dennis Kongsiri, vice president at Mitsui & Co Energy Risk Management in Sydney said:
“If you look at the way this market is rallying, it’s been broad-based and gradual, relentlessly going higher supported by a strong products market and solid refining margins,
As long as the world economy does not go into recession, it could be the case that the days of cheap oil are over,”
“Yeah, we could probably hit $78 in another couple of years.”
The OPEC cartel is expected to increase quotas to at least 1.5 million bpd in their June meeting, but that would do little more than justify the overages in exports that are already occurring.
Just drill ANWR already. We’re acting like junkies trying to get our fix of crack from an abusive dealer, not that it helps that quite a few of us are using crack pipes the size of a ditch drainage line.
Also, seen today: A Hummer H2 towing a 100-gallon gas tank, replete with gas nozzle. I wish I’d had my camera.