Tuesday, November 27, 2007

Funny that WisDOT doesn't mention oil prices

The Environmental Impact Statement for the Wisconsin Department of Transportation's $1.9 billion plan to reconstruct North-South I-94 doesn't discuss oil prices. At all.

It is silent on the impact of oil prices on construction costs, and is silent on the impact of oil prices on how much people drive.

This is such a basic subject these days, and WisDOT does worse than flunk it -- WisDOT doesn't even show up for class.

Meanwhile, we have this piece of news from the San Diegeo Union:

LONDON – Analysts sharply raised their average forecasts for oil prices next year to a record near $74 a barrel on expectations for a cold winter season, a weakening dollar and an influx of fund money, a Reuters poll showed on Monday.

The monthly survey of 37 analysts put the consensus forecast for U.S. crude futures (CLc1) in 2008 at a record average of $74.43 a barrel, up $3.94 from last month's poll. The average price for oil so far this year is $70.20.

“Our oil price scenario assumes a rise in the average price of oil to $100 at the peak of the winter season and a correction from March into spring,” said Harry Tchilinguirian, senior analyst at BNP Paribas Commodity Derivatives.

“Weather is a key caveat, but we assume that cold weather will trump a U.S. economic slowdown as the market's overriding concern,” he added.

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