With demand for oil increasing in China and India as well as the US, the price of oil will continue to increase as will drilling in the United States.
However, I’m not sure about the $149 oil, but $110 or 120 dollar oil is very likely unless there is some great negative impact on the world’s demand for oil.
Increased oil prices will simply mean that the world’s economy is improving.
If price were driven only by demand, that would be true. Price increases due to cuts in supply are more problematic, particularly in a down economy.
Oil is priced in and bought with dollars. The decline of the dollar will raise the price of oil all by itself. Increased demand will play a role certainly, but the falling dollar is having a big impact.
Not at all. It simply means that the supplies will be short and the value of the World Standard currency the U.S. Dollar is dropping like a rock. Demand has shifted to China, India and Pakistan which will also drive prices up here.
They will eventually drop the Dollar as the universal currency that the World bases Oil & Commodity prices on. There is already serious talk about this happening as soon as this year.
God help us if this happens. The price for the same commodities here in the U.S. would triple almost immediately, because we would be forced to buy the new currency with worthless Dollars first, before we could buy Oil or Commodities.
Simply printing more money to pay the debt will also no longer work. Geithner is playing Russian Roulette with 5 loaded chambers and only one empty!