Useful information and discussion about energy, including oil and gas, peak oil, hydrogen, alternative energy, ethanol and other biofuels, climate change, and geopolitics, from an experienced industry professional. A service of GSW Strategy Group, LLC, providing foresight and insight in an uncertain world. Content Copyright 2004, 2005, 2006, 2007 and 2008 by Geoffrey S.W. Styles. All rights reserved. The views expressed here are solely those of the author.

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When Is Cheaper Oil Bad?

Posted on September 08, 2008

Talk about a reversal of fortunes. A mere two months since oil was flirting with $150 per barrel, OPEC is considering production cuts to defend a $100 price floor and reputable journals are suggesting that $80 could soon be in sight. Whether this is interpreted as the popping of a speculative commodities bubble or the market's rational response to slowing demand from a weakening global economy, cheaper oil would present policy makers with a dilemma. In particular, it could force some of them to consider unpopular steps to rein in demand, since the market may stop doing that for them.Cheap is i...

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