On CNN’s “American Morning” October 26, Ali Velshi gave a measured report on long-term prices of gas and oil, but anchor John Roberts wasn’t having it.
“Are you buying any of this?” Roberts said to Velshi.
Even when Velshi suggested that the higher cost of oil would be an incentive for a move toward alternative fuels – thus keeping oil averaging $60 per barrel over the longer term – Roberts jumped to attack business again, saying, “And then they find reasons for those alternatives to be more expensive. If they can make a buck, they’ll make a buck. Bottom line.”
Roberts also cynically introduced the segment with, “Gas prices are up, oil over $90 a barrel now. Are we heading to 100? Well, probably 100 before 80.”
Velshi explained, “Most people who are experts at this believe that oil should be around 60 bucks a barrel. That’s what the supply and demand suggests there is.”
“The whole $30 extra is all the speculation about war and what’s happening in the Middle East, which doesn’t have much to do with the whole supply and demand issue,” he added.
“My long term good news is possibly good,” said Velshi. “And part of the reason they think that oil will be around 60 bucks over the next 10 to 15 years is that we won’t depend on it as much.”
The October 26 Wall Street Journal explained [2], “The market got its first nudge when reports broke that the Bush administration planned to slap economic sanctions on two prime components of Iran's military, as well as several of the country's top state-owned banks.”
The Journal was optimistic, though, saying, “The rise in oil prices still hasn't stopped the resilient U.S. economy.”
The average gas price has risen only a penny from the average price a month ago, “due to smooth U.S. refinery runs and strong imports.”