It's easy to anchor on recent prices and think they are the norm. For reference.
Oil. Price per barrel
1999 $16.56
2000 $27.39
2001 $23.00
2002 $22.81
2003 $27.69
2004 $37.66
2005 $50.04
2006 $58.30
2007 $64.20
The big question going forward is what is the spare capacity. The truth is no one really knows.
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