Originally posted by ODC:There isn't adequate supply either. China is a nation of 1.3bn people that are starting to come out of the dark ages. The middle class is growing and even if a quarter of that 1.3bn decide to drive, that's double the US's thirst for oil.
There is no way we have enough supply to last us the next hundred years at double the consumption rate of oil, no way. There just isn't enough oil down there to do so.
Those are long term concerns. They should have no impact on short term oil prices.
For the term of the contracts, there is enough oil being produced to take care of demand. Therefore, there is adequate supply.
