WORTH A TRY?
They'd do it for their currencies, why not do it if the Saudis themselves estimate 60% or more 'speculator's premium' in the markets?
If they did it alongside some bankable estimates of new supply that is (finally) supposed to come on this year, it could work.
OVERSIGHT RESPONSIBILITY - Just as good as 'stimulus'?
Someone should look at why nat gas in the USA keeps rising - now double what it was when Bush took office. The costs in the industry are not going up that fast and demand growth is almost a known constant.
The prices to the electricity industry have fallen, but has any of that been passed on to consumers? Here, in NJ, the spike in nat gas caused a spike in electricity costs, observable in price hikes in retail electricity production and NJ Transit 'special' rate changes. As nat gas has fallen back from peak, no one has lowered prices ...
We can argue about whether low energy prices are desirable, but do we really have to go through a severe growth slowdown in order to develop the political will to do something about energy efficiency and the slow pace innovation and adoption of energy efficient products?
Wednesday, January 16, 2008
Should Central Banks Intervene in Energy Markets?
