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View Full Version : What "Serious Experts" believed about oil in 2005


Bill
02-20-2008, 03:48 AM
This is another one of those things that is unintentionally funny...

They said over and over that the prices of homes would continue to go up forever - they built an entire economy based on that idea - which turned out to be a bubble.

But, the price of oil just won't cooperate.

http://www.forbes.com/business/feeds/afx/2005/08/30/afx2195813.html

Oil price bubble about to burst, says business guru Forbes
08.30.2005

SYDNEY (AFX) - Oil prices are set to crash from this week's record highs as a speculative market bubble bursts with an impact that could make the hi-tech bust of 2000 'look like a picnic', business publisher Steve Forbes has predicted.

Forbes said the high oil prices currently dampening the US economy, which peaked at more than 70 usd a barrel yesterday as Hurricane Katrina headed for the US Gulf Coast, would fall to 30-35 usd a barrel within a year.

'I'll make a bold prediction... in 12 months, you're going to see oil down to 35-40 usd a barrel,' he said, according to Agence France-Presse.

'It's a huge bubble, I don't know what's going to pop it but eventually it will pop -- you cannot go against supply and demand, you cannot go against the fundamentals forever.'

Moby
02-20-2008, 09:09 AM
The normal laws of economics don't apply with oil. Supply is tightly controlled just like diamonds. Demand can be manipulated through long term government policies.

I often think people write articles like this to try to manipulate prices in their favor.