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Because oil companies actually have that much control over prices?
In the past seven years, speculators have pushed prices well beyond any price the market could support, and recession economics have pushed it down well below the levels at which most producers can break even.
Oil companies have little to no control over the price of oil. They're just paddling along, hoping to survive the price fluctuations.
- Also, we ARE low on oil. At 2008 levels of consumption, we'd have just a few decades left.
Only we're not burning oil like it's 08 anymore. And with deflation a very real and worrying problem in many parts of the world, we probably won't reach those levels again for quite a long time.
And if consumers aren't willing to pay for $80 oil, goodbye fracking boom.
How do oil companies have little to no control over the price of it? Is that controlled on stock markets or something?