Qatar: Price of oil would drop $15 if politicians shut up
World Tribune
Qatari Energy Minister Abdullah Bin Hamad Al Attiyah said the price of oil would drop by $15 should politicians end their expressions of concern over a halt in supplies.
Qatari Energy Minister Abdullah Bin Hamad Al Attiyah said the price of oil would drop by $15 should politicians end their expressions of concern over a halt in supplies.
posted by Andy W. Rogers | 8:01 PM
1 Comments:
Dream on, Andy. It's not the politicians, its the rational response to credible evidence from several quarters that crude supply and domestic refining capacity are not in line with anticipated demand, and that sudden interruptions in the existing supply could cause even sharper price spikes. From Nigeria, to Venezuela, to Iraq and Iran, its getting a bit dicey out there.
Having said that, heaven preserve us from the loud mouthed pols in both "centrist" parties who are jostling to be first in line to repeat The Peanut's mistakes from the 1970's and restore us all (those who must get around without a retinue of body guards and a line of taxpayer fueled SUV's) to waiting in lines at the filling station for our next ration of 10 gallons. Perhaps at $4 or $5 per gallon.
At $70+ per barrel, and roughly 19 or 20 gallon gasoline yield per barrel (supposing refining capacity doesn't take any more big Katrina-like hits in the near future, say from a bit of terrorist action), the input cost is about $3.50 per gallon (that's before refining costs, transportation costs, state and fed fuel taxes, and the retail markup to let the station operator have a few crumbs). Plan to dig deep, folks, we will see a lot more of this before seeing any relief.
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