$120 Oil Coming Soon? Sure looks like it.

[Rockholm]

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=autFGntuNqZY

[iamthebandfanman]

1. thats all ?

ill take 10 please

[Dont_Bogart_the_Pretzel]

2. Well since the U.S. dollar is no longer 100 cents...

of course it $120.00 will seem high :sarcasm:

[SpiralHawk]

3. "Smirk" - Commander AWOL

[ThomWV]

4. What will be comming in the mid term (less than 18 months) is oil less than $60

Bet on it.

[NewJeffCT]

5. If Dems upset McCain & win the presidency

the dollar will likely rebound and the price of oil will plummet. Most of the cost of oil has been due to the weak dollar. In Europe, oil prices have not risen all that much.

[Winterblues]

7. I'll certainly take that bet, How much?

It will be a cold day in Hell when oil gets below $90. a barrel. I suspect it will continue to rise for quite some time. And I don't think OPEC wants Republican rule all that much as too drop the price of oil plus I doubt the American dollar will rise in value all that much that soon and you can bet they aren't going to be willing to lose money hand over fist as you suggest they would for our elections..

[MrCoffee]

8. I'll take that bet...$120 by May 2009

[hunter]

9. A massive collapse of the world economy could bring $60 bbl oil.

I'd rather not see that.

We can clean up the Bush Administration's mess by inflation or by the imposition of economic "austerity" measures that would wipe out whatever is left of the middle class.

Peak oil is here, and the only way of dealing with that is demand destruction. There are two means of reducing demand, inflation and/or austerity, and inflation seems to be the path our leaders have chosen.

If oil does go to $60 bbl it's likely that it will be just as unaffordable for most people as $120 bbl oil. It's not something to be optimistic about either way.

[WarholPop]

6. absolutely

There is evidence that the world already has hit "peak oil," and that there are not enough reserves in the ground to replace what we already have consumed. Add to the decreasing supply, we have increasing demand as China, India, Brazil and other countries increase the size of their middle class with the same desires as Americans to have cars. The fundamentals alone support higher oil prices, and this is only compounded by the fact that the United States dollar is in a free fall and the geopolitics of oil are as unstable as they ever were. In my opinion the US invasion of Iraq was all about establishing a big military presence to secure its oil interests in the region.