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Originally Posted by Konovalov
The lack of supply is only one of many major factors influencing the high oil prices. It's not just as simple as you say. There is:
1. Supply shortage - caused mainly by industry underinvestment.
2. Slightly increased demand fueled by China, India and co.
3. War in Iraq, while instability in Nigeria due to ethnic tribal tensions have resulted in lower outputs.
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I see you easily buy into hype.
1. No supply shortage exists. Prices are not based on Supply at all.
2. Fuel demand hasn't changed in 50 years, growing at an average rate of about 1% per year for as long as most of us have been alive. This includes Chinas increased demand for fuel.
3. There has never been peace in the middle east and hostilities have never affect prices before.
Skybird can explain it to you in detail since I do not have time, but it is clear that you do not understand what is going on. Ask him. I'm sure he will oblige.
-S