Friday, May 9, 2008

Why $120 oil is good

Oil prices
NEW YORK ( -- With $120 oil not seeming to follow the fundamental law of supply and demand many are wondering if the market is broken.

But to many, all the financial voodoo is merely a distraction. The fundamental reality of oil - and the thing that makes it so attractive to investors in the first place - is that we are using ever more and finding ever less. High prices are necessary if we are to reduce demand, find new oil, and develop alternative technologies.

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