re: #378 Gus 802

Brent crude futures have barely moved. Crude oil is still cheap. If the futures were going to respond in a catastrophic manner they would have done so already. High oil prices and a recession are counter-intuitive. The futures market isn’t run by a bunch of reactionaries that would force the price of oil higher than it could sustain to maintain a profit.

All told in 2007 Gulf of Mexico Federal Offshore Oil total 414 million barrels. That puts it somewhere between the production of Iraq and Brazil.

Gus, the increase doesn’t happen like that. This is a reduction in cumulative new production. The futures markets will predict this, that is why they are the futures markets.