The following writings represent personal views and does not represent any financial advise for the purposes of investment decisions.

Since the last article, "The 100 Dollar Mark and the ER - Economic Responsibility!" I have refrained myself from writing what has been written by other respected practicing economist and I reckon it's time for the Rat to speak his mind again.

The reverse is happening now to the price of oil; it's moving downwards and if one was to take the real demand and supply equation and the real sufficiency of oil in the ground, you will discover that the real fair price of oil should be averaging in the range of USD35 to USD40 per barrel. This has taken into account the present day value of money rising overtime.

The Rat has been advocating a Responsible approach in every business decision taken and a holistic view of its impact on society on the whole must not be forgotten.

The practise of rewarding risky behaviour has brought us to this irresponsible situation whereby such actions have bankrupt not only ourselves but for generations to come; this has become our legacy that we leave our children with.

Now, how Responsible is that!

Every action, every word and every promise that we make must be a Responsible one that has positive long lasting effect. The longevity of our economic wealth has and must be sustainable. Somehow, history always seems to repeat itself and we seem to want to ignore the lessons of the past.

The "Greed is Good" and "Profit at all Cost" mantras and mindset are so prevalent that it clouds our good judgement. Such behaviours do not bring sustainable results for a variety of reasons.

What is missing is the sustainable practice of doing the right things for the right reasons; it all starts with the motives behind the reasons and we always betray ourselves with our greed.

Here's what I wrote in my last article "The 100 Dollar Mark and the ER - Economic Responsibility!" that is still relevant in this present circumstance especially on the part about Economic Responsibility.

"The reality is that Economic Responsibility ("ER") practices by the general capital market community is severely lacking.

From the sub-prime crisis in the USA to the rich divide between developed and developing nations, we don't seem to have the propensity to learn from our mistakes. Perhaps it's blindness that is preventing us from learning from the mistakes made.

Economic Responsibility ("ER") is basically a call to do the right thing for the good of the economy in delivering its goods and services in an affordable and responsible manner to its children of the world so as to enrich and bless their lives.

Although the capital markets are responsible to deliver returns to investors, its responsibility is also extended to the manner in which it is done. There is nothing wrong with reporting record breaking after tax profit returns.

Financial modellers and economist can predict, in free market enterprise models, with a fair degree of probability the movement of prices, its possible societal consequences and its compounding effects on the global economy.

This would suggest that the capital market players are in a position of influence, and with the combined billions and the basic principle of demand and supply to bring about a state of perceived equilibrium; they would need to behave responsibly in the way the make and earn their money.

Capital market players need to exercise a fair degree of responsible behaviour and exude confidence to ensure that the bigger picture of global economic wealth is created responsibly and can be sustained.

The ability to sustain returns consistently to enrich the lives of the human race is paramount in bringing about the social economic harmony that we all need and crave for.

And that we can all do in an Economically Responsible way.

At least the CSR promise is made good."

So, will the price of oil hit and surpass the 40 US dollar mark and perhaps sustains itself at a lower level? The question will be when and this time, this is a responsible price level.

Disclaimer: Readers are advised to do their homework, analysis and conclusion for their own investment needs. The views of the writer is purely personal and do not form the basis to be used for any financial dealings. Trained in business, accounting and finance, the writer has been a keen observer of world economic events and has chosen to share his personal views.