ps. if anything, the price of oil has been systematically manipulated to KEEP THE PRICE LOW.

Why else would the worlds biggest consumer of oil, the USA, put so much effort into manipulating and interfering with the pretend sovereign nations who possess the resource. Do you think that the USA would have any interest in the mid-east, on any level if it werent for its massive oil reserves.

The USA has worked very hard indeed to surpress the oil price, over many decades. Much of its recent 'price increase' has been little more than a re-pricing of the progressively worth less unit of exchange... the US dollar. This has been going on for a while and whilst oil lagged the depreciation of the us$, thus transfering wealth (from producer to consumer) by stealth (theft), its now catching up. Fast.

Arguably, thru its geopolitical machinations, the US has kept the price of oil down. Being as oil is the life blood of economic activity and the US is all about the money, its no surprise. They're apparent prosperity has been subsidised by CHEAP oil.

And we have become addicted to that cheap oil. Out of sheer ignorance, many actually feel entitled to this sort of subsidy to 'our way of life.' Do you realise at what price, to oil producing nations and its people, we enjoy this 'oil subsidy.' The ignorant and entitled folks of the west, who eat with their eyes and think with their fear, are in denial and in for a very rude shock as they adjust their false thinking to REALITY.

If anything, oil is cheap and has been kept down by literally cracking skulls, so that we can live the lie, er l mean, dream.

In real terms, oil is still below its price level of the 70's oil crisis. You think oil at us$200 looks expensive? Bwahahahahahahahaha. It might do now. That price wont look expensive if it hits us$400.

Boy, oh boy, are the deluded masses in for a (c)rude reality check.

Let me see: Right-wing cranks think peak oil is a left-wing conspiracy theory, and left-wing cranks think it's a right-wing conspiracy theory. OMG it must be true!!

Hi Paull, The problem is that production is below demand and always will be...... because production is flat and going down and can't be raised, regardless of the price. See my report and then get back to this discussion.

I think williams point has a value as much as all others raised in the posts. But fundamentally we are in trouble by some shocking lack of foresight and balanced management by our governments/parliament, and when the s### does hit the fan big time, group and persons accountable long shifted on to blame, just a government department/political party by some 'name' left...

I find looking at oil demand/supply as a running tap(supply) with hand controlling tap(demand) to price charged for it, to slot in different factors and identify the major ones...

basic rule of business, supply must follow demand...no point making dark-green slippers in millions if no one wants to buy one...

usually cost of supply plus profit will determine price is primary equation, and going by increasing demands we consumers so far happy/able to pay(tap turned up by producers, making more money is reason we are here isnt it(yep...sacarstic)

the major change over last few years to demand is china and india, dramatic increase in demand, usually tap turned up on flow...but...seems flow close to max-out, fitting with peak-oil theory, upsetting demand/supply causing price to rise, forcing oil saving/alternate fuel demand to rise(and which oil industry wants to prevent as it permanently affect their current monopoly), and...yep, demand/supply again...

so futures industry, sloted in between cash and consumer part of tap/hand/flow/money interaction, value of 'futures industry on oil' has to be close to total 'oil money turnover' to have significant effect, dont think so...though I dont have the exact figures of each...but if that is the case then financial markets are in s### for allowing such unbalanced growth in futures/speculation markets to complete in value with the 'real' markets and which case a big down coming up there as well and we the common people are going to suffer over it...we need to control our governments,eg by becoming/ensuring government employees right/need/accountable to individually act in balance in the job asked to be done as prerequisite job requirement...

Sam

Paul.l - "At higher prices more oil becomes available and demand decreases as people look for other ways to provide the energy needed. There will be no dramatic reduction in oil supplies which will destroy our economies, as predcited by the nuttier peak-oil followers."

Good old cornucopians. "Don't worry. When the oil runs out, those clever scientific boffins will come up with something to replace it!"

Not a chance. There is no energy source that comes even close to oil for providing power, especially for transport. The future will be nuclear and pedestrian.

Everyone here should look at the profits of Exxon-Mobil. They are not going down. They are higher than ever (if i understand the situation correctly).

Also I've said it time and again. If the complete idiots who lied about the wars had not created them and destabilised the region, then there wouldn't have been a reason to speculate on the oil in this way. As far asAustralia goes, that is due to Howard and the entire Liberal cabinet who authorised Australia's involvement in the Iraq and Afghanistan wars and now Rudd with the Afghanistan war, despite Australian's opposition to war at the time being something like 70% (a huge majority). Ignoring the lies about the wars, it was and still is a crime against society and the economy.