Reply #35: Ding ding ding We have a winner here! Yamani is a very good

[54anickel]

connect the dots player. Another snippet from the end.

snip>

Speculators have bet it will take several years to fix the problem by generating enough new supply -- and that political tensions in big producers will keep a question mark hanging over existing oil flows.

But Yamani has long believed that if producers let oil prices go too high they sow the seeds of their own destruction by encouraging development of higher-cost supply, suppressing demand and breeding new fuel technologies.

Nothing in today's price surge has changed his view. He foresees a rerun of the mid-eighties crash, when a glut of OPEC oil halved crude prices in the space of a year -- an episode that ultimately forced Yamani out of office.

"What happened in the eighties will be repeated some time later this decade. It's ABC economics."

<end snip

Ah, but what's different this time is that there are no CAFE standards to repeal to disperse any glut. Not sure where the glut will come from this time let alone if there will be one at all, especially if Shrub gets back in. :shrug: