Shell Oil CFO Blames High Oil Prices On "Speculators" - "No Physical Shortage" - Times UK

[hatrack]

A leading oil industry executive has blamed speculators for driving the price of oil to record highs.

Peter Voser, finance director of Shell, said that he believed that soaring oil prices were being driven by speculation and political tension, not a lack of supply.

“We find it hard to explain oil at $100 a barrel. I don’t see anyone queing for fuel and nor are there any physical shortages,” Mr Voser said.

“The price seems to be driven by some speculation and also has a political premium in it, rather than actually some of the fundamental drivers,” he added.

EDIT

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article2739030.ece

[Vincardog]

1. Do you think he realizes his companies Just In Time processing takes every blip in the price and

magnifies it at every step in the process?

[zbdent]

2. I guess that too many people started paying attention ... the Akron Beacon Journal

used to DAILY carry the prices for Alaskan, West Texas Crude, and North Shore (I believe) prices ... all which were quite close to the "price of oil" ...

And dontcha think that the fact that these are not Middle East suppliers might just give a hint as to who is profiting from the war?

[Vincardog]

3. LEt me guess IRAN RUSSIA and DP are the biggest gainers.

The Saudis are getting by too.

[amandabeech]

7. What is "DP?" n/t

Russia and the Saudis profit if oil goes up. The Saudis, however, import everything and invest everywhere, so they don't want the price to go up so far as to adversely affect their investments.

[amandabeech]

6. That'd be "North Sea."

It's oil from the North Sea between Scotland and Norway, primarily. It is frequently referred to as "Brent."

It's high quality, but the field is in decline.

[phantom power]

4. I think I'll call you "Baghdad Peter."

[Strelnikov_]

5. Does Mr. Voser expect us to believe that the finance director of Shell

does not understand the concept of demand destruction?

[TheWraith]

8. The Shell Oil CFO is telling the truth for once.

He forgets to mention that his own company is one of the ones that's causing the situation, but he's absolutely right that there's no physical shortage of oil. If there were, there would be somewhere that you couldn't get it. I have yet to pull into a gas station and have them tell me "Sorry, we're out." It's all about the price-gouging. They can get away with it, and they know it.