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Originally Posted by eribrav
Finally, pumping oil at $130 a barrel is very VERY profitable for the producers. If it were speculators driving up prices then the producers would be drowning the market in oil right now, taking advantage of those high prices. Yet the fact is that world production is not going up, and inventories are not rising. This is de facto proof that we are in a supply constrained environment, not one driven by speculators.
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Very American thinking there. Short time, instant gimmie though process. If they flood the market, then the price ends up dropping again. Or they can keep production at a steady pace, and milk the high price for all it's worth. Keep the price high, then once people are used to the high prices, increase production, drop the price marginally, and rake in the cash. Long term thinking. Something we need to do more of if we are going to get around problems like this.