According to
This Article, analysts just can't figure out why oil prices remain so high when oil reserves are plentiful.
Excerpt:
Oil price surge defies forecasters
Even investors aren't factoring in $50 crude
By Lisa Sanders, MarketWatch
DALLAS (MarketWatch) - As crude-oil futures climbed above $51 a barrel this week, analysts threw up their hands and wondered why.
"None of the historical correlations analysts have used - inventories primarily for oil, storage for natural gas, natural-gas and oil prices for rig counts -- work," said Jim Wicklund, managing director of energy research at Banc of America Securities.
Well guys, here's a hint (below):
It's the DOLLAR, Stupid!
It has nothing to do with their forecasting models, and everything to do with the devaluation of the dollar.
It's simple, really. Their forecasting models aren't taking into account Bush's MASSIVE trillion dollar deficit, which has investors dumping US Dollars like hot potatoes.
I bet that if they were to use Euros instead of dollars, something OPEC has suggested, they would find that their models are much more accurate.
So what does all this mean? It means that Bush's spending orgy is killing our economy! And now he wants to borrow more to fund SS privatization? JUST SAY NO!