"We are facing a school event of market failure." Davide Tabarelli Nomisma energy analyst and president of Il Sole 24 Ore for commodities currency so record oil prices. "It's really market failure ...

Why?
Because when you have Americans that Democratic senators proposed legislation to assess whether there has been speculation in the market means that the temptation to regulate markets is strong, too strong to resist.

Revenues for OPEC producing countries, at year end will increase about 60 percent.
Disorientation. Against this is the feeling you get disorientated. OPEC will increase revenue this year of one million dollars.

What does this mean?
Means that it is outrageous how much money are running out in the vaults of producer countries. And 'scandalous as raking, but also what they say and are not ...

... The magic word: increase supply?

Exactly.

The increase in oil is not only a fact that impacts on energy prices but also on the materials. Increases all the crude, polymers, paints., Plastics containing foods and food ...

I for years I had confidence in the market and thought that adjusts itself according to economic laws. But as demand increases and is likely to grow further and supply does not increase and no increase there are alternatives. The price driven by demand could even reach $ 400.

Blame it on the producing countries or financial speculation?

Hard to say. I expected that the offer was capable of increasing more rapidly within three to five years. But this desire is not there.

Or at least not so far.

It is not behind these crazy increases rational reasoning. But there are three elements that in recent years have led to this ...

First.

The political question that is always behind the oil. Today we speak of 60 years of Israel. Well, the Middle East is an area with major global political tensions, tensions have lasted 60 years. Behind in the background, there's oil ... and the contrast between the Middle East and the West has deteriorated since September 11.

Second.

An objective inability of producer countries, manifested by the energy crisis of 1972, when the mining industry was nationalized in Arab countries, to make investments. Because the technology we have Western companies were driven out by Arab countries. Investments that would alleviate the costs of extraction and refining of crude oil

Third.

Western responsibility: we talk about biofuels, renewable, CO2 reduction ... So much so that the producing countries are convinced that in a few years unless we do this for the oil and are squeezing what you can squeeze to get as much as possible from what have. Madness.

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