Why are oil prices rising so fast? (5)
On 23 June, the BBC carried a report on its web site which stated:
“Despite an emerging global consensus that oil prices are dangerously high, there seems little chance of the cost of oil falling significantly in the near future.”
On the very same day, I carried a posting on this blog which stated:
“If the cause is not rising demand but more probably panic and speculation, then we can expect that sometime in the future prices will fall back, although probably not to the level before the current crisis took hold.”
So what happened? Today there is a report from the BBC which explains that:
“Oil prices touched three-month lows of $118 a barrel on Tuesday amid signs of rising supplies and slowing demand.”