After the largest weekly drop in oil prices (‘Oil Falls Again, Gutted in Record Weekly Drop’ Reuters 05.06.11) there was the New York Times, the oil industry’s good Samaritan instructing us to the cheers of the oil crowd, of the inevitability of ever higher oil prices to come (‘Price of Crude Oil Falls Again, But Analysts Warn It Will Remain at Lofty Levels’05.06.11) In its inimical fashion the New York Times trotted out all the usual palaver assuring us that oil’s recent sharp price decline is but an interlude, a blip, in its continued ascent into the stratosphere. Thereby not only giving us the oiligopoly mantra, but also preparing us to accept unquestioningly any new ascent in oil prices. By doing so, making it easier for the ‘preordained’ oil and gas price increases to come to pass- the best flacks the oil industry could buy could not have pitched it better.
Yes, there were all the usual lesson points as to why we should blandly accept the inevitably of higher prices. The disruption of production in Libya and the Gulf of Mexico, and of course Yemen, increased consumption in developing countries, and in Japan as it recovers.
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