Osg1 20110307 OIL PRICE

TOF, sponsored…

It looks like we’re headed for another oil price crisis.   Or as I like to call it, a prisis.  Even though, as oil supply expert Andy Lipow will tell you there is no shortage of oil.

LIPOW:… Saudi Arabia

So the supply is there!   But… oil prices aren’t only based on how much we have today.  They’re based on how much we WILL have tomorrow.  And that’s why we have ourselves a prisis.

More after this from Charlie:

(SPOT)

The economic stats have started to show a little sparkle; unemployment down, bank lending – the responsible kind – up for the fourth straight month because people are buying what Jill Schlesinger?

SCHLESINGER… loan out to do that.”

So you have business snapping back and you have Americans buying cars – almost all of which still run on gas.   Which gets us back to why the price of oil is going up:  Sean Cota who represents the oil companies says don’t blame THEM:

COTA:

It’s investors placing a bet that even though there’s plenty of oil NOW, events in Libya could change the outlook very quickly.  And oil investors know that if the worst DOES happen, the US will STILL need oil, and will pay any price to get it, because 38 years after the price shocks of the 1970s – we are STILL dependent on foreign oil, and its going to stay that way until we figure out a way to run the economy on Spinach.  A spinach prisis… we could deal with.

Tof.