Electioneering

The price of oil is subject to short term drops, which at the risk of editorializing, coincide with the election cycle, but it may just be the drop in demand at the end of the summer travel season. However, there is no denying that the long term trend of the price of oil is upward, and the sky is the limit.

Demand for oil worldwide is increasing, especially with China and India, by far the world's largest populations industrializing. Supply of oil worldwide is decreasing. This is an extremely simple concept. Everyday there is less of what more people want.

That is why pieces like this one are so irresponsible.

"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving."

Despite how much we like to believe otherwise, there have been no new oil discoveries in the world since the North Sea and Alaska North Slope reserves were discovered and exploitation commenced in the 1970's. In simple terms, Mr. Rozell, down is not the only place they have to go. In fact, down is the only place they cannot go.

We might see a short term decline just prior to the most critical election in our nation's history, but rest assured that should the GOP maintain control of their power structure, the price of oil will head north indefinitely.

It must be nice to have each emir and prince in the Middle East scratching your back, despite threatening their regimes with rhetoric of freedom and democracy, selectively imposed of course.

Oil Energy