Ack! What's happening? I'm staring at a USD 130 Per Barrel headline, when I was just blogging a few weeks ago or at least 2 months ago that we were just experiencing a USD 120 barrel high.
Unbelievable! Never in my wildest dreams would I see it consistently climbing this high. I couldn't even bear to find enjoyment in driving anymore. What the hell is happening? Are we really running out of oil? Is this just a market bullcrap? Or I wish it's just a nightmare.
Market has been paranoid if there's enough oil inventories in the US. So with this price increase, basic law of economics, one would assume that there's a deficit. Demand for global consumption of all cannot be met.
But if some people are just paranoid on their rising gas bills, some are paranoid of a looming trade/price war or a political war when it comes to dealing with OPEC countries. In some reports, they're saying that OPEC companies fail to budge and give in the supply to match the demand for oil. Continuous meetings, political 'beggings' to these oil magnet countries are present in an attempt to cool down the prices, but OPEC will not announce any decision until the September meet. How very convenient? Now, they seem to be enjoying people leaning and depending on their shoulders.
To put into perspective, Eric Wittenauer, analyst of Wachovia Securities, said that "growing tensions between Washington and Tehran's looming, fueling paranoia of war. Washington in the meanwhile passed a bill on Tuesday authorizing a federal government to sue OPEC in US courts over alleged price fixing, in the latest swipe at the cartel over skyrocketing prices." (Manliatimes)
Meanwhile in the Philippines, people are still clamoring for prices of oil to cool down, together with the prices of everything else, if we get super lucky. It seems it's falling on deaf ears. Oh, and by the way, I just heard, the flag down jeepney ride was just raised from 7.50 pesos to 8 pesos this week.
Worst thing that could happen? Probably the war.
What I think could actually happen for the next couple of days? Well, the usual. Sudden bouts of paranoia. Indigestion. Frustration etc.
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