Drumbeat: September 8, 2012

theoildrum.com 08 Sep '12, 2pm

Drumbeat: September 8, 2012

Posted by Leanan on September 8, 2012 - 11:21am The Repricing of Oil : Traditional pricing dynamics no longer apply If oil prices can’t fall that much because of the cost of marginal supply and overall flat global production, and if oil prices can’t rise that much because of restrained Western economies, what set of factors will take the oil price outside of its current envelope? Those who still don’t understand the past ten years cling to the antiquated view that prices will eventually return sustainably to levels of 2002 in due course. They believe that a great volume of new global oil production will start to appear and prices will be driven back to the cheap levels of last decade. Many who take this view also believe that market manipulation and inflation largely account for the high price of oil and that once reflationary programs like quantitative easing (QE) come to...

Full article: http://www.theoildrum.com/node/9474

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