Why Do Oil Prices Keep Rising?
Simple questions like why do oil prices keep increasing deserve equally simple answers like because consumers keep buying it. Of course at some point prices will be too high for this trend to continue, and so far the only signs so far have been dramatic decreases in sales of large SUV’s and increase sales of high mile per gallon vehicles like Honda Civics. In fact, I just sold my efficient car in a rural NY community for substantially more than I thought I would get for it last year. Ah, capitalism.
However, while I have not yet been affected and have even made money many people have felt a squeeze in their wallets. From recent reports, it sounds like that squeeze is going to get tighter.
Uh, oh!
Is there any good news to this? Yes, increased research into alternative fuels (non-governmental research), increased energy use awareness, fewer cars on the street, less environmental pollution, and all benefits are derived from the free market instead of an inneficient bureaucracy that has brought recent losers such as CAFE standards and Ethanol to the market.
Additionally, as one final warning, OPEC is already getting the world ready for $200/barrel oil. Prices that high would cause a complete reorganization of the American Economy and more than likely a global economy change.
