Russian production is in a state of decline independent of what OPEC is doing - as are Venezuela and Mexico. Toss in the complete mess in Nigeria, uneconomic conditions for oil sands expansion and similar conditions for low volume wells and we will see oil prices start to rise. Where I live we are seeing cost of gasoline rise somewhat independent of oil prices. This means that the refiners are now starting to drive up their margins ( we still really do have an oligopoly going in the oil complex). We have a couple of years to get alternative energy moving, average mileage per car lower and, generally, start getting off the oil standard. But I doubt anyone expects oil to stay this low for very long.
Yeah, it'll be a while before we get off the oil standard.
But might not be so long before we get off the dollar standard.
<<China is trying to make its currency convertible and give it a role as a reserve currency. The first experiment is limited to transactions between Hong Kong and the neighboring provinces. It is also proposed that the yuan renminbi be used in 8 neighboring countries, including Russia. With these countries, agreements have already been signed for the settlement of contracts in the Chinese currency. Perhaps it is no coincidence that the news was released on Christmas Day, when Western markets are closed, reducing the impact on the dollar.>>