In yesterday’s column, we heard the market’s wildly bullish opinion of the oil services sector. The all-time highs in those who drill, pump, and transport tell us that billions of dollars are flowing into oil service order books.

The price of oil, now nearing $130 a barrel, is being driven up by subsidies on cheap petrol and diesel, according to a report by Reuters.

China, India and other nations that subsidize cheap petrol and diesel may be even less willing to raise prices than they were six months ago, aiding crude’s ascent toward $130 even as demand deteriorates elsewhere.

While Indonesia appears set to raise prices as soon as this week, the world’s fastest-growing oil users show little inclination to tackle their subsidy schemes, as fighting food-fueled inflation has become their top priority.