Crude Oil Eyewash?

Well, Here is an interesting statistics which I understand are from Bank of Kuwait as per
Can some one make me understand that why is that if cost of producing Oil is so less then why price of crude oil is upwards of $125? Well it did tumble nearly $16 over a week. I am sure it will tumble to $100 soon.
My thinking is that it will remain there for a long time with the push and pull logic whatever it is. One thing is sure that there is indeed no basis for such a price rise except mere speculation. I do understand that [ am i wrong? check Opec site] that there are indeed known reserves of oil to last this planet for another half century. Newer oil fields are discovered on daily basis sometimes even couple of billion barrels!
Thus ladies and gentlemen, I would like to question raising of the crude prices to three times within a year and putting economies of many countries in jeopardy as some sort of conspiracy!! ;) :D

1 comment:

Anonymous said...

They say it is supply demand. Supply is less and demand is more and hence the speculation. Also it has dropped may be coz China is cutting down the usage of oil/gas and other sources of pollution for summer Olympics. Will be interesting to watch what happens over the fall/winter.