George Soros on Oil Prices
- Increasing costs of new fields and depletion of old fields
- Backwards sloping supply curve - the higher the price goes the less incentive the oil producing countries have to convert appreciating underground oil reserves into above ground dollar reserves which are depreciating.
- Subsidies in countries with growing oil demand.
- There is plentiful speculation which is increasingly affecting the price. The price has a parabolic shape which is characteristic of bubbles.
Click here to listen to George Soros talk about the price of oil.