Shortage of oil and greater demand is not increasing the cost of oil.
Our Energy Information Administration shows us the top nations have been importing less oil.
Peak crude oil consumption is already behind us.
Japan’s peak year was 1996, Germany 1998, Italy 1995, Thailand 2005, Malaysia 2004, France 1980, United Kingdom 1996, Russia 1992 and the USA 2005.
China has increased oil consumption but in just one month the drop in USA’s 2008 consumption is more than two years of consumption growth in China, and India, and the new burgeoning economies.
Supplies of oil are at least 500,000bpd more than the world is using.
Kuwait and Saudi Arabia have dropped prices to the level of nine years ago. Their Official Selling Price is 1998’s price of $4.20 a barrel.
But since Phil Gramm and McCain tweaked the market, more than 45% of crude oil futures transactions take place without regulation of the US Commodity Futures Trading Commission.
Many are seeing these consumer price increases as the big banks merely recovering the cash they lost with crooked mortgages. Expect to see extra ‘market manipulation’ as we get closer to election day.