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10.29.2007

OIL PRICE BREAKS $92/BARREL

Turmoil in the major supply sources Iraq, Nigeria and Iran created fears that supply will not be free flowing like before. This resulted to a record breaking price that peaked at $93.20 a barrel, before slipping back to $93.05.

The current price is about 29% increase to the price level five months ago ($65.89 per barrel).

Whenever there is a movement in oil prices, I always go back to the oil's real value which is estimated by experts to be at $182/barrel. At the rate that the prices are moving, I'd say that we're on our way.

Time to devout more energy to alternative sources of fossil fuel, alternative(renewable) energy and better fuel efficiency of our gas guzzlers.

The legendary Lee Iacocca claims that unfair trade practices cause the low sales of American in Japan. I beg to disagree. Other than better quality of Japanese cars compared to the US automobiles, compare the fuel efficiency of Japanese cars against the US vehicles. The result should be enlightening enough.

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