The talking heads on CNBC are wondering why oil prices keep going higher. Well, a picture is worth a thousand words, so here's why ...Source: Netoilexports.blogspot.comYou can see exports are down year over year while demand keeps rising. And that's why the Saudi agreement to pump more oil isn't calming the markets -- it's too little too late. Saudi Arabia, United Arab Emirates, Iran, Kuwait, Iraq and Qatar curbed their output by 544,000 barrels a day last year. At the same time, their domestic demand increased by 318,000 barrels a day. So, their net exports dropped by 862,000 barrels.

It would seem that the proposed rise in Saudi production of 200,000 barrels from June to July, on top of the 300,000 bpd rise in May, is not enough to even make up for last year's cut in OPEC exports.

Here is some other news you can use ...

Analyst: Air fares

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Source: James West, MidasLetter  05/30/2008
Our over-saturated information world has immunized us to the most pressing problems we face as a species. The price of oil, for instance, is no longer interesting, even though it sets records weekly, simply because it has been doing so for the better part of a year, and so that news becomes uninteresting through sheer ubiquity.

The economic repercussions of this cost of oil, which, as feedstock for gasoline, heating oil, jet fuel, diesel, and many plastics, takes a long time to reach into your pocket and squeeze hard though. Would you believe me if I told you that the price you are now paying at the pump is in greater relation to $65 a barrel oil, not $135.

So if it was $65 oil that caused $3.50 a gallon gasoline, where does that put the price at the pump by the time $129 …

Normally, I don't care for predictions but considering this was the fellow who in 2005 said their could be a "super spike" in crude, let's see what he has to say (I am on record as saying a "World of Shortages" theme combined with Western governments flooding the world with fiat paper can only combine to ultimately create higher prices). These are the first people (along with Cramer - have to give him kudos) who finally are realizing that the world does not revolve around the United States of Subprime; a position I've been advocating for a long while. The quicker we move away from our country-centric views, the better. U.S. gasoline is no longer the leading fundamental driving oil markets, according to a report penned by Arjun Murti of Goldman Sachs Tuesday. Murti who famously predicted the dawn of the “super spike” back in March 2005, says ...