Posted on 12/11/2007 8:41:38 PM PST by familyop
NEW YORK, Dec 11 (Reuters) - Oil prices will hit $100 a barrel before dipping to $80, and should pierce the triple-digit threshold within the next six months, investor T. Boone Pickens said on Tuesday.
"Get ready for $100, it is coming up. A hundred dollars will come before $80," said the Texas oilman who heads the BP Capital hedge fund during an interview with CNBC television channel, adding that he expects the market to become adjusted to $100 oil.
"You'll see it ($100 oil) within the next six months. A hundred dollars is going to become routine."
U.S. oil rocketed to $99.29 a barrel in late November on concerns about supplies ahead of the Northern winter and the slumping dollar.
Worries a slowdown in the U.S. economy could depress demand growth in the world's top consumer have since sent prices down. Oil was around $90 a barrel on Tuesday.
Pickens said that supply constraints would continue to drive prices higher, as well as moves by oil producers to ensure more revenue.
In April, when prices were around $65 a barrel, Pickens said oil could tip $80 a barrel in late 2007. (Reporting by Matthew Robinson; editing by Matthew Lewis)
With the Fed rate cut, investors will pound the dollar since it will mean that they can put their money in other currencies and get higher interest rates. Thus $100/barrel is all but certain.
As the Fed cuts interest rates--the dollar is weakened, thereby putting upward pressure on oil prices.
...Cheers...for the UK.
I was stationed in the UK during the Suez Canal crisis and the gasoline rationing of that time in the the UK.
I sat in gas station lines in Southern California during the 1973 man-made gas shortages.
Onward to The $5.00 mark...
Just sticking it to the little man no one else will stick it to.
We won’t drill, we won’t build oil processing plants, we won’t build Nuclear energy plants and we won’t put up wind power generators where we should be placed. All we ever do is talk, talk and talk.
So what if the price of oil goes up, frankly I don’t care anymore.
Ah, but our Congress protects us. The great knowledgeable Fathers and Mothers sitting in Washington D.C. (Remember them!) Who needs oil. They give us soy fuel and corn fuel and ‘cow exhaust’ fuel. Besides with global warming we will not need natural gas or electricity for heat ... ever. What more could we ask for?
/sarc
I don't understand why the republicans don't give much of an effort to educate the electorate and hammer the democrats with this. When oil/gasoline prices are high they should be in front of every camera they can find and drive this issue home with voters. This could be a winning issue for the republicans if they would just use it. The dems are so in deep with the enviro whacko lobby, they would be easily cornered on this issue. As with most other things, the politicians can't depend on talk radio to get the message out, they need to get out there and do this themselves.
Agree. It’s so simple, even a caveman could do it......
Why don't the publicans hammer the democrats about anything? Why don't the pubs hammer she who will not be named with all the dirt on her? Why didn't, and still don't, the pubs hammer the murdering teddy the swimmer, murdering coward fat bastard who's still a senator when he should be in jail?.........Let me give you a hint......
We have a one party party system. Laugh if you want, but it is true.
One is cancer (pubs) and one is heartattack (dems).....the end result is the same. This is a game of power to all of them, and the voter (hahahaha) be damned.
FMCDH(BITS)
It was supposed to hit 100 bucks a barrel 6 months ago according to PMSNBC.
Gonna love that $6.00 a gallon heating oil, and gasoline...
The US onshore rig count has been higher this year than it has been for a long time.
We blinked.
Even being around "educated" Americans ans being around some that are not, I do not think they can grasp this. We are so dumbed down.
This would take educating them that oil is a fungible commodity and the basics of supply and demand, we are talking ECON 201 here. The lack of economic and financial education in the shocking. Just look within your circle of friends and see those that are mystified by their 401(k) plans.
Now add to that 30 second slanted sound bites from the Dinosaur News big 3 and see the inertia the GOP has to overcome.
Not to mention the inertia the GOP has to overcome of them not saying anything or standing for anything in a long time. name the last time Boehner and the GOP had a press conference that revolved around ideas translated into a bill or platform? We haven't seen that since Newt/Haley Barbour over 10 years ago.
After they got hammered for the Govt shutdown and Hilda got the files and her lock-box, they have been rather silent on ideas. We who still believe in Reagan Conservatism wait for our party to come back to us. We can't wait much longer, some of these broken things need fixing quick, if they are not fixed, where will we be as a nation....
Pickens has been wrong about this for the last year. $100 oil is always just six months away for T Bone, a little man who likes TV attention. If the economy goes into a recession in ‘08, he’ll have some excuse for why we saw oil at far less than $80 instead of that elusive $100.
The US government sends about $10 billion a year (my estimate) to the middle east. Supposedly to keep the pipe lines open.
This is a hidden cost in every gallon of gas.
To solve the problem:
Stop all money going to the middle east, except to Israel.
Invest it instead in developing solar and other sources of power.
Tell the oil sheiks to go pound sand.
Because the Republicans are wimps. Plain and simple. And aside from a couple of MD’s in the GOP delegation, the vast majority of Republicans in Congress have the IQ of a doorknob on any issue of substance, such as technology, engineering, finance, etc.
So when you have a bunch of people such as the GOP in Congress going up against the tear-jerker environmentalists who know how to play the sob story, when they don’t have a good command of the facts and they lack any technical capacity to hold two numbers in their brains at the same time, they get trounced again and again.
Ergo, they don’t even try to take on the environmentalists, because they look silly every time they try. They’re bringing penknives to intellectual gun fights.
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