$100 Oil!!!!: "Not necessarily very high."
$100 oil is “not necessarily very high,” said OPEC president Chakib Khelil on Sunday.
The new leader of the world’s largest oil cartel believes inflation-adjusted highs in the 1980s were “between $102-110.” Thus, $100 in 2008 is no big deal.
"The surge in price will probably go on until the end of the first quarter of 2008,” Khelil predicted, “before stabilizing during the second quarter.” How he comes by this view… he didn’t say.
“It would take a lot of economic slowing to arrest the squeeze between growing demand trends and depleting supplies,” notes our own oil adviser, Byron King. “Oil supplies are so tight… between sabotage in Nigeria, bad management in Venezuela, raw depletion in Mexico, Peak Oil in the Middle East.... the slightest amount of bad news -- a hurricane in Gulf of Mexico, a pipeline leak in Alaska, a bomb blast in Iraq… would send prices up even further.”
The new President of OPEC (Oil Producing Exporting Countries), Chakib Khelil said this in a recent speech. He predicted that the "surge in price will probably go on until the end of the first quarter of 2008, before stabilizing."
So, OPEC has now gotten used to the idea of $100 oil and are thinking..."hmmm....how can we squeeze a little bit more..."
Well, expect $100 oil to be a fact of life and remember that inflation-adjusted highs in the 1980s were as high as $110/barrel, so if this is going to be a true record-setting surge, $110+ is not out of the question.
In fact, it may only take one slight bit of bad news like a hurricane in the Gulf of Mexica, a burst pipe in Alaska, increased bombings in the Middle East to send prices to...oh let's say...$125/barrel. Hey, if OPEC can pull numbers out of their keister, why can't I?
Is the high price of oil all about the Middle East and the weak dollar? No. It is also about trouble in Nigeria, increased demand from India and China, depleting supplies in Mexico, bad management in Venezuela, environmental laws, etc. Oil is complicated. A lot of factors are in play, but it only takes one random act to make all of the factors important and in play.
But remember, while some pundits are crying that the sky is falling with Peak Oil, new discoveries are being made, technology is allowing more oil to be had from existing and once thought dead oil fields.
Notes From The Underground:
Dow - 12,818.14 -9.35
Gold - 875.10 +15.10
Silver - 15.57 +0.36
Oil - 96.77 +1.68
Wheat - 9.25 +0.22
To Your Investment Success,
Patrick
The new leader of the world’s largest oil cartel believes inflation-adjusted highs in the 1980s were “between $102-110.” Thus, $100 in 2008 is no big deal.
"The surge in price will probably go on until the end of the first quarter of 2008,” Khelil predicted, “before stabilizing during the second quarter.” How he comes by this view… he didn’t say.
“It would take a lot of economic slowing to arrest the squeeze between growing demand trends and depleting supplies,” notes our own oil adviser, Byron King. “Oil supplies are so tight… between sabotage in Nigeria, bad management in Venezuela, raw depletion in Mexico, Peak Oil in the Middle East.... the slightest amount of bad news -- a hurricane in Gulf of Mexico, a pipeline leak in Alaska, a bomb blast in Iraq… would send prices up even further.”
The new President of OPEC (Oil Producing Exporting Countries), Chakib Khelil said this in a recent speech. He predicted that the "surge in price will probably go on until the end of the first quarter of 2008, before stabilizing."
So, OPEC has now gotten used to the idea of $100 oil and are thinking..."hmmm....how can we squeeze a little bit more..."
Well, expect $100 oil to be a fact of life and remember that inflation-adjusted highs in the 1980s were as high as $110/barrel, so if this is going to be a true record-setting surge, $110+ is not out of the question.
In fact, it may only take one slight bit of bad news like a hurricane in the Gulf of Mexica, a burst pipe in Alaska, increased bombings in the Middle East to send prices to...oh let's say...$125/barrel. Hey, if OPEC can pull numbers out of their keister, why can't I?
Is the high price of oil all about the Middle East and the weak dollar? No. It is also about trouble in Nigeria, increased demand from India and China, depleting supplies in Mexico, bad management in Venezuela, environmental laws, etc. Oil is complicated. A lot of factors are in play, but it only takes one random act to make all of the factors important and in play.
But remember, while some pundits are crying that the sky is falling with Peak Oil, new discoveries are being made, technology is allowing more oil to be had from existing and once thought dead oil fields.
Notes From The Underground:
Dow - 12,818.14 -9.35
Gold - 875.10 +15.10
Silver - 15.57 +0.36
Oil - 96.77 +1.68
Wheat - 9.25 +0.22
To Your Investment Success,
Patrick
posted by Patrick Clark at
7:06 AM
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