How far can oil prices go? This has been the question that my wife and children and most people ask nowadays. Well, the answer could vary depending on whom you are talking to.
Looking at it in the most simplistic way, say based on the reasons given by companies or businessmen – prices go up because oil prices go up, it is quite easy to assume that prices could go even higher for the simple reason that oil producers are also dependent on their own products. Suffice to say that as the price of oil goes higher, the price of products needed to produce oil also rise.
The loop therefore creates an effect to everything related to oil stretching as far as the oil producers themselves thereby making it even more expensive to locate, extract & produce that oil. Which in turn, causes even higher oil prices, which again raises the cost of oil production.
The compounding effect therefore affects everything else which in turn could further push the prices higher.
Forget about how the governments, dealers and traders, investors and speculators and oil producers do with regards to oil prices. The bottom line here is that oil prices affect everything.
So what shall we do? It is all up to us. If you can earn more than enough then it is fine.
Oh well, the cockroaches said, who cares.