April 28, 2008

The rational behind high oil prices.

http://www.nytimes.com/2008/04/28/business/worldbusiness/28oil-WEB.html

“According to normal economic theory, and the history of oil, rising prices have two major effects,” said Fatih Birol, the chief economist at the International Energy Agency, which advises industrialized countries. “They reduce demand and they induce oil supplies. Not this time.”