i wrote the following post on may 28 and published it in the wrong blog. i noticed my mistake today, after i read that suv owners in america are now hard pressed to sell their dear vehicles...
you see? oil is a commodity, whose fate has to be decided by the economy, as all other commodities. other silly measures -except finding alternative, renewable energy sources-, like war or political intervention, for instance, only help make its prices more un-economical!
here is the post:
weeelll... mesdames et monsieurs, i ain't no economist and i sure ain't no finance genius, if any genius at all. i only got eyes to see and a mind to think... i've been busting my chops yelling "oil is a commodity, its price can't keep going only up and up. anytyhing, including war, that causes its price to over-boost is a waste because unless you can drink it, prices go down again when nobody buys it" (*)...
just after america's first major holiday weekend, memorial day, per barrel oil prices fell below $127, furthering a decline borne on a growing sense that record-high costs have cut demand for gasoline and other fuels. ap says americans are driving less because of "bloated prices", while a report informs that compared to last year, vehicle miles on u.s. roads fell by 4.3 percent (11 billion miles). the dollar's gain against the yen and euro also helped reduce oil prices because investments undertaken as a hedge against inflation did not favor oil, although conjonctural opportunities such as a temporary drop in world production could have been tempting.
the best (also the worst) thing about capitalism is that, its virtues and vices tend to balance each other at the expense of those with no power to decide, rather than the virtuous or the vile, who mostly are the same anyway.
so please, think again before you claim that the u.s. is in iraq for any reason but political stupidity, and certainly not for oil. blood in petroleum makes it too expensive to be competitive.
competitiveness? in case you forgot, it is as much a genuine key to capitalism as free enterprise, private property and functioning civil liberties.
(*) permit me a little gloating please. i am one of the few that have harped on the intellectual hazards of oil fetishism in global political-economy analyses.