Re: SC19

http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&pubid=968163964505&cid=1152876908156&col=968705923364&call_page=TS_Business&call_pageid=968350072197&call_pagepath=Business/News

Traders controlling oil price: U.S. energy secretary

The world's oil suppliers have lost control of the markets, ceding that power to traders and giving rise to greater volatility in crude prices, U.S. Energy Secretary Samuel Bodman said Friday.

With oil hitting record highs of more than $78 US per barrel Friday in the wake of increasing violence in the Middle East, Bodman said crude is now traded like securities "and so emotion enters into it."

"This is the first time in my professional lifetime that the suppliers of oil in the world have really lost control of the markets," Bodman said during a two-day trip to Western Canada where he toured the rapidly developing oilsands region in northern Alberta.

"They are unable to turn the spigot and increase supplies, and therefore are unable to control oil prices."..........

Dire developments with the worldwide supply demand situation will continute to push oil skywards. 100+ oil could be the next " Big Event " away, and that event could be a wide range of things. I read an article that said, above 100 dollars per barrel, general aviation for all of us basic folks, could go under because of the expense of the fuel. The US is getting into a tighter, and tighter hydrocarbon supply position, because of developing world events. Our country is losing once accesible supply on a whole host of fronts. 3 dollars a gallon is hard to take, but when we start hitting 4-5-6 a gallon, the craps really gonna start hitting the fan.