What's fueling this year's price run-up?No kidding?! Drive less? Buy greener rides? What is this world coming to?!
'I think the price of crude oil is high because it's become the darling of the investment community and the speculative community,' Kloza said. 'You have tremendous money flow coming into crude as an investment, into crude oil futures. And as long as that happens it's very difficult for crude oil prices to move lower.
'You know, $70 is about 12 or 13 times the cost of producing it. And more typically in the past it sold for three or four or five times the cost of producing it.'
But one thing that's not contributing is the driving habits of Americans, Kloza added.
The Energy Information Administration says it expects gasoline consumption to rise as much as 1½ percent over the same time last year.
Kloza begs to differ, saying: 'They probably base that on percentage of disposable income, but never underestimate the American public's ability to sort of scorn or spite the oil companies. I think, as prices get close to $3, people will drive less just because they're so annoyed.'
Wednesday, April 12, 2006
'Stormy' 6 Weeks Ahead For Gas Prices - CBS News:
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