Quote:
Originally Posted by accyman
its a pitty amazon dont sell diesil and petrol although i must admit the prices have dropped a little but it wont be long before someone decides the economy needs a tweak so they will restrict the flow of oil and prices will rise again
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I listened to a BBC world service programme a few days ago about oil prices.
It seems that the saudis deliberately reduce the price of their oil in order to make fracking not worth doing. Fracking and other new ways of fossil fuel extraction are far more expensive to operate than conventional oil drilling. If the oil price is low enough, investment in fracking becomes unattractive and is discouraged. However this manipulation of the price by the main producer will likely last a few years only if past experience is anything to go by.