Reply #6: Other. [View All]

[GliderGuider]

I think this is one of the purest examples of the free market at work that we've seen in a long time. Supply and demand are in knife-edge balance. The notion of Peak Oil is percolating through into the traders' consciousness - the idea that everyone may be pumping as hard as they can, and they really can't get the oil out any faster. That means that any little hiccup on either the demand or supply side is going to send things out of whack, causing price spikes. That's a high-risk situation, so every barrel carries a risk premium.

Nobody is gouging, nobody is manipulating - it's a pure consensus market. Don't expect it to improve.

$0.02