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Before we start blaming the middle east, we should consider the fact that they aren't the ones setting oil prices - its our capital market that does. THe higher that stock price goes, the more money is made by trading that those crude oil stocks. Investors and the media are using any excuse, any excuse (ex. a road side bomb in Iraq) to push those price higher because they realize that demand isn't dropping. Yes, it's affecting other parts of the economy, but if I've invested millions in crude, then that's all I'm thinking about.
We cannot control our insatiable demand and China's demand is increasing along with its economic growth, which was about 10% last quarter, I think. Also, we as Americans have to face the fact that we are undergoing a price adjustment at the pump to bring us more in line with the rest of the world. Unless we step up our own offshore production, $5/gallon gas could be the norm in less than 2 years.
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