Posted on 06/10/2009 10:14:59 PM PDT by Big_Monkey
Predictions of $250 a barrel on fears for oil reserves, hopes of economic recovery and hedging against weak dollar
The price of oil burst through the $71 a barrel mark today amid revelations that proven reserves had fallen for the first time in 10 years and predictions that the price could eventually hit $250.
The latest high – from lows of $30 only four months ago – came on the New York Mercantile Exchange, where the cost of July deliveries rose by $1.35 to $71.36.
This comes on top of a $2 rise the day before as investors rushed into the market on the back of lower stockpile figures, higher demand estimates and speculation against further falls in the dollar.
"I wouldn't be surprised if we're testing $80 in a week or two," said one analyst, while BP's chief executive, Tony Hayward, questioned whether $90 could be the "right" value.
Kuwait's oil minister, Sheikh Ahmad al-Abdullah al-Sabah, put some of the rise down to signs of recovery in Asia but warned that overall demand was still weaker than last year. Opec would not raise supply at current oil prices but did not rule it out "if it reached $100", he said.
Alexei Miller, chairman of the Russian energy group Gazprom, raised the stakes further when he reiterated last year's estimates of $250 a barrel. "This forecast has not become reality yet, given that the [credit] crisis gained momentum and exerted a powerful impact on the global energy market. But does this mean that our forecast was unrealistic? Not at all."
(Excerpt) Read more at guardian.co.uk ...
Guess I’ll have to move to Manhattan where I can walk to the grocery store. :)
That oil price jumps during this economic downturn and heads will ROLL.
Yes, in the rest of the world oil is up about 10% over the last 3 months... Here in the US it’s up 25%. The dollar’s been sliding, and that’s been the biggest driver of the cost of gasoline here.
Obama will get his $5/gallon of gas by just devaluing the dollar! No taxes needed...
Wrong. I have a wife and 3 sons that I'm still fully supporting. Not a happy situation as I'm figuring out how to cut my income by 70% to stretch 318 hours of remaining vacation through to October. Besides the humans, I have 4 dogs, 3 cats, 3 birds, 2 tortoises and a snake to feed as well. Lots of mouths...a lot less income.
So were the Indians. But, I can't fit my big screen in a TeePee, and I'd look ridiculous in a deer-skin loin cloth.
Sorry. I just assumed you we're an empty nester. My wife made me sell the bike before our first was born. I don't even dare look at them if she's in eyesight, it's two days of grief I don't need.
Ok. I’ll be the first one to say that if gas gets to $4.00gal that the Obamination will indeed act.
They will announce a tax rebate for anyone earning under $40,000 year, for gas purchases. Osama will announce that he understands the plight of the little people and the government is ready to help by subsidizing their gas purchases.
And the rest of us better suck it up and empty our pockets to help them buy gas.
We should nationalize money making industries, not money losing ones.
Imagine if we had the Army Corps of Engineers build four new refineries!
Gas at 1.50 a a gallon would propel our economy through the roof!
Oil is not traded and or produced freely, so we may as well benefit.
http://www.energybulletin.net/node/49178
"CERA maintains its position that the reasons for US liquid fuel demand having peaked are economic and geopolitical in their nature, rather than in any way driven by geologic factors."
Yeah, right. The Corps of Engineers has done such a fine job with the New Orleans levees, we should trust them with our energy supplies? Oy!
The only thing governments should do when it comes to managing businessis bend over, insert head in rectum (even further)and inhale deeply. Govern least, govern best — as well-known early president was wont to remark.
John D Rockefeller, Thomas Edison, Andrew Carnegie, and Henry Ford built this Country. Then came the Liberals: FDR, Joseph P Kennedy and his sons, Carter, Mondale, Clinton, Algore, and Kerry and now the Obamanation. The hedgefunds led by George Soros are manipulating Wall Street and the commodity pits on the Mercantile Exchange In Chicago. Obama must be stopped.
This is actually reassuring, I think we may be at a top. Last year as oil hit $140 people were predicting $500 or $800 a barrel and that was when the price started to fall. Later, as oil fell to $35 other “experts” were predicting $20 or $25 dollar oil, signalling the bottom. These wild claims one way or the other usually signify a top or a bottom in my observation.
$250 was predicted last year. The belief that any isolated trend will last forever leads to facist science (AGW) and financial ruin (tulips, tech stocks, residential real estate flipping, etc.)
Manipulation in order to squeeze us in those little mini-Euro cars.
You’ll need two side cars.
Saw this morning that Chinese exports had drooped 26.4 percent in May! Imports dropped too.
Maybe $85? Depends on how low the US dollar gets with Obama.
My DH got a motorcycle for Father’s Day.
We homeschool and don’t have to go anywhere but to church. He can drive the new bike to work and park his truck at home.
DRILL, BABY, DRILL!
This price trend has little to do with oil supply.
Oil in storage is abundant from what I read.
Watching James Grant on CNBC I think he has the reason, it’s inflation fears - created money is flowing to hard assets to hedge inflation.
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