Queen's School of Business expert available to comment
KINGSTON, ON, Jan. 2 /CNW/ - If gasoline prices have you banging your
head against the steering wheel, strap on a helmet because it's about to get
worse: the $100 barrel of crude oil made a fleeting appearance today.
What's behind these prices? And will they last?
According to Dr. David Detomasi, a professor of international business at
Queen's School of Business, the spectacular rise in oil prices has everything
to do with speculation and little to do with market fundamentals.
Dr. Detomasi argues that:
- The current price spike is due to speculation. The onset of the
winter heating season, geopolitical concerns in areas such as
Venezuela and Iran, utterances by OPEC and some lower inventories
south of the border are to blame.
- It's a bubble, and the question is not if - but when - the air will
be let out of the balloon. The price should ease somewhat over the
coming year; levelling off in the $60-$70 dollar range says Detomasi.
- The $100 barrel is about psychology, not geology. $100 a barrel isn't
significantly different from the mid-$90s we have faced in the last
few months, but it makes for great headlines. It's not the price that
we should be focused on, says Detomasi, it's the overall trend.
A compelling and thoughtful speaker, David Detomasi is available for
Possible questions include:
- How much of this spike is due to the fear of diminishing supplies?
- Will reaching the record-breaking $100 mark have an impact on
For further information:
For further information: To arrange an interview, please contact: Amy
Davidson or Josh Cobden, Environics Communications, (416) 920-9000, ext. 2830