The Oil Price Puzzle
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Regarding Robert J. Samuelson's July 1 column, "Who's Behind High Prices":
I appreciate Mr. Samuelson's sensible observations about economic developments and their relation to politics, but I take exception to his interpretation of the surge in oil prices as resulting simply from supply and demand. We are not swimming in oil, but it also is not in short supply. Economic expansion in China, India and elsewhere may strain capacity, but the Saudis, among others, and the Iraqis, if they get their act together, can satisfy demand and then some.
The surge in prices is chiefly the result of speculation. A barrel of oil should not cost more than $80 under present market conditions. There's no call to give speculators a free pass, and I can't wait for the oil bubble to burst.
ALAIN de SARRAN
Bowie
