Krissy09, 2C, Jurek, dondon , spiderman8

I believe all of you would agree that the price of oil plays a major role in Connacher’s Share Price. Oil price is influenced by both supply and demand as well to some of extent by the value of the US dollar. With the economic policies currently being followed by the US government the dollar’s value could plunge rather dramatically causing a rise in oil price; however, if there is a double dip recession demand could also plunge offsetting the impact of the dollars fall.

Suppose though, that the US Fed and Treasury are successful in walking the tightrope and the economy improves. Oil prices will probably then start to rise again but how high will they go?

I have been following "peak oil" for the past 5 years or so and have read hundreds of articles with regards to it. In my opinion, it played a major role in the current economic meltdown and I am convinced that the basic theory is sound; however, there is a black swan that may delay its full impact. Iraq has proven reserves and has announced a plan to get them to 12 million barrels a day of production within six years. If they are successful the full impact of "peak oil" will be delayed. What remains to be seen, though, is can they get production going soon enough to prevent another major spike in oil price and if/when they are successful will it cause the price of oil to fall dramatically?

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