Politics will Spike Oil Prices Once Again
Friday
Aug 15, 2008
If you are happy at the current trends of weekly oil price drops, better make some provisions for potential price hikes once again no thanks to the continued political indicators that have stemmed from wars in countries like Russia and Georgia. The United States is at it again and while the conflict has already been elevated to the United Nations, there is no telling what courses of action that President Bush may suddenly create and once again put us into crisis.
At the moment, the debacle in Russia seems to be stabilizing but do consider the fact that this is only one piece of the problem. Further issues such as eventual shortage of actual resources and oil hoarding are bound to ensue. So if you think it is time to close the alternative fuel developments around the world, doing so would place us in worst situations.
“I don’t think it will go down below $100 for very long,” said Christopher Ruppel, an energy analyst at Execution LLC, a broker and research firm for institutional investors like hedge and mutual funds. “Once you go down too low, you’ll shut down new production, and prices will go right back up.”