croniccynic
Member
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- May 7, 2011
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Today the capacity for the world’s oil ‘production’ far exceeds its use. The Saudi’s alone can easily make up for the lost Libyan oil. Global demand isn’t the first order driver for the price of oil. Controlling the supply, which the Saudi’s and others do, and speculation are the first and second order drivers. To stop this there would need to be a benevolent supplier (One that is not trying to maximize profit.) of oil with the capacity on the order of the Saudi’s. None of North America’s wells are run by benevolent suppliers.
I spent a lot of years in commerce and don't recall a benevolent supplier of anything. I do disagree with your definition of supply control and speculation being the drivers of any product. Product demand, sales, is always the primary focus with supply control and inventory being normal business functions to maximize profitability with commodity speculation a secondary, associated market. Without demand there would be no supply/inventory or speculation.