{"id":987,"date":"2008-06-23T22:41:54","date_gmt":"2008-06-23T21:41:54","guid":{"rendered":"http:\/\/www.rogerdarlington.me.uk\/wordpress\/?p=987"},"modified":"2008-06-23T22:41:54","modified_gmt":"2008-06-23T21:41:54","slug":"why-are-oil-prices-rising-so-fast-2","status":"publish","type":"post","link":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/?p=987","title":{"rendered":"Why are oil prices rising so fast? (2)"},"content":{"rendered":"<blockquote><p>Brown&#8217;s analysis of the causes of record oil costs was at odds with the Opec president, Chakib Khelil, who reiterated his view opposing increased production, saying &#8220;the price is disconnected from fundamentals&#8221; of supply and demand. &#8220;We believe that the market is in equilibrium. The price is disconnected from fundamentals. It is not a problem of supply.&#8221; The Indian finance minister, Palaniappan Chidambaram, agreed, saying producers and consumers should &#8220;wrest control&#8221; of trading by agreeing to restrict prices.&#8221;Surely demand and supply cannot explain what has happened over the last 12 months,&#8221; he said. &#8220;Oil prices were $70 a barrel in August 2007 and how is it that they&#8217;ve doubled when there has been no dramatic change in demand?&#8221;<\/p><\/blockquote>\n<p>This is a quote from <a href=\"http:\/\/www.guardian.co.uk\/business\/2008\/jun\/23\/oil.saudiarabia\">a news story<\/a> today on the weekend oil summit in Saudi Arabia.<br \/>\nI have to say that &#8211; as will be clear from <a href=\"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/2008\/06\/why_are_oil_prices_rising_so_f.html\">my posting<\/a> of two weeks ago &#8211;  I&#8217;m with OPEC rather than Brown on this one. Markets are not always rational.<br \/>\nIf the cause is rising demand, then prices will continue to rise because demand will continue to rise but supply will probably only increase marginally (in the short term anyway). 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.<br \/>\nLet&#8217;s see what happens. Meanwhile consumers around the world are suffering.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brown&#8217;s analysis of the causes of record oil costs was at odds with the Opec president, Chakib Khelil, who reiterated his view opposing increased production, saying &#8220;the price is disconnected from fundamentals&#8221; of supply and demand. &#8220;We believe that the market is in equilibrium. The price is disconnected from fundamentals. It is not a problem [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-987","post","type-post","status-publish","format-standard","hentry","category-world-current-affairs"],"_links":{"self":[{"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=\/wp\/v2\/posts\/987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=987"}],"version-history":[{"count":0,"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=\/wp\/v2\/posts\/987\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=987"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.rogerdarlington.me.uk\/nighthawk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}