<Econbrowser: The PR of PO The Oil Drum LOBG: Michael Economides>

Two assignments for the evening...

Posted by Prof. Goose on August 25, 2005 - 6:31pm
Topic: Demand/Consumption

First, Halfin in the "Econbrowser: The PR of PO" thread cites the new post by Levitt which says:
That is why water, oxygen, and sunshine, all incredibly value [sic] products, are virtually free to consumers: it is cheap or free to supply to them. And that is why we use a lot of gas and oil, but not many rickshaws at current prices.
I suppose we should go over and tell him why he's wrong again...even if this post of his is more amenable to the possibilities he was so easy to dismiss in his last post.

Second, for your consideration, this article on the implications of the Iranian Oil Bourse was sent in by reader Karl S.  As he said in the email to us:  "Here's an item of great interest despite its flaws."

Could the proposed Iranian oil bourse (IOB) become the catalyst for a significant blow to the influential position the US dollar enjoys? Manifold supply fears have driven the price of crude oil to its recent high of US$67.10 - only a notch below its highest price in inflation-adjusted dollar terms. With the world facing a daily bill of roughly $5.5 billion for crude oil at current price levels, it becomes apparent that sellers and purchasers of the black gold are looking into all ways that could lead to a financial improvement on their respective sides.
Update [2005-8-25 19:8:47 by Prof. Goose]:On the same topic, here's an interesting (and related) post by Ryan McGreal at RaisetheHammer.

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