Oil price predicted to hit $220 a barrel this summer :(

[ame="http://www.youtube.com/watch?v=ivVVG-6T2m4&NR=1&"]YouTube - Egypt 'allows' Iranian warships to use Suez Canal[/ame]

​

 

I have no doubt that Prius and all other hybrid/electrics will become a very hot commodity very soon. What I don't understand about rising oil prices is why is the DOW falling on news of rising oil prices? It would seem to me that the market would be going up wildly on demand for oil stocks, but this is not the case. It's very difficult to understand the rationale for what motivates stocks and futures markets.

 

All this stuff going on in the world i would bet by summer $4.50 a gallon easily. Europe btw is paying threw their ars for gas and diesel so i think even at $5gl it would still be cheap.

Since i got my Prius i notice how people drive so aggressive around me, pickup truck drivers hate me with passion and stomp on the gas to show how much power they have, wait till gas gets to $6 hahaha

 

The US has been setting this up for a long time, propping up dictator, ruler or in some cases "so called friends" in the Middle East, each one creating enemies for the US and its allies that blindly follow the same ideals. Even Iraq has and will turn on the US when it comes to oil prices, since they are now aligned with Iran. Part two of that is the American public's distaste for getting away from oil as the primary source of energy.

 

Rising oil prices help the (crude) oil companies, and companies related to exploration, drilling, etc.. but they depress pretty much every other sector of the economy.

 

Thank God Obama banned offshore oil drilling! :rockon:

 

Offshore drilling would have little effect on gas/oil prices. We're not exactly Saudi Arabia.

 

I am absolutely, unequivocally calling it: Brent crude will not exceed $200 USD per barrel in 2011. No chance in hell.

You can find a person to predict anything. For example I could predict $300. Not an expert? Well, I can find you an expert who will tell you it will fall to under $90 in 2011. If it was going to hit $220 this summer that's where futures would already be and they're not. It's simply a guess.

$200 barrel oil will machine-gun the economy for every single nation.

The only way oil hits $200 this year is if in addition to Libya we see Saudi Arabia revolt and then they blast all their oil infrastructure. Then oil will hit $200. And then the economy will crumble to dust and then oil will sink below $200 again because nobody has the money for it. This is a not a real possibility, hence my assurance it won't hit $200. I'd be very surprised at a $150 spike and even that would be pure speculation and not maintained for any meaningful amount of time.

People are going crazy over Libya. It produces only 2% of the world's oil. If it is 100% taken offline a 2% reduction in supply doesn't warrant any run up in prices beyond what already has been seen.

 

Thanks to the manufactured "crisis" in the mid east, oil is skyrocketing. Real or not, this will cause the global economy to stall again

 

i also hear.. o wait no thats the same as i predict that there wil be even mor predictions to make the price go up
good for stock trade!!

 

It's just that so many industries have transportation expenses that will go up with the price of gas. And when their costs go up, the price of goods and services goes up.

 

You nailed it about people going crazy over Libya. Well, at least the wall street soothe-sayers are going crazy over Libya. Why? I have no clue except to say they have no idea what they're forecasting. If Kadafi falls, the bigger issue in Libya is Al Quida taking over; not a loss of Libya oil production. In fact, Al Quida needs Libya oil and more to keep up their drug habits!

 

Be careful what you wish for, it almost never happens the way you wish.

 

Exactly! It reduces people's spending power and also causes the prices of virtually everything else to rise since they're also dependent on oil (e.g. as an input cost or for transportation/shipping).

There's a slight issue that if Kadafy falls, there will be a disruption in oil supply from them until a new regime takes over. Europe is apparently much more dependent on Libryan oil than we are. The bigger issue is that it's yet more unrest and the fear that it could spread to other countries that do produce lots and posses a lot oil such as Saudi Arabia and Iran.

We've seen and are seeing civil unrest in places like Yemen, Iran (again), Egypt, Tunisia. Of these, only Iran is a big oil producer, but still, it's back to the fear of it spreading. See http://www.eia.doe.gov/cabs/Iran/Oil.html and http://www.eia.doe.gov/emeu/cabs/Saudi_Arabia/Oil.html about their reserves and production.

If you watch shows like Nightly Business Report | PBS, you'll have a better idea of at least what the media explanations/excuses are for oil and stock prices moving up/down along w/sometimes their net effects. I watch the show every weekday.

Back to post 4, also see http://finance.yahoo.com/news/Gas-prices-set-to-rise-cnnm-2960114003.html.

 

fear or not its not happening yet so no reason for a higher price
this is only because of speculation and stock trading fillig there pockets
just like the food price is going up
that needs to stop!
maybe americans are not fun of socialisme but social-(democratie) is better then so called freedom act?

 

Predicting oil prices is fun...

http://priuschat.com/forums/freds-h...fter-me-100-barrel-100-barrel-100-barrel.html

http://priuschat.com/forums/freds-house-pancakes/41792-i-think-oil-prices-will-come-down.html

http://priuschat.com/forums/freds-h...y-chance-oil-will-200-barrell-in-4-years.html

http://priuschat.com/forums/prius-hybrid-news/64689-oil-going-2-gallon-soon.html

Does it really matter? Exxon stock otoh has only gone one direction.

 

I do not know about that. Looking at a 5 year chart of XOM, if you bought in ~5/2008, you'd have paid $88/share and kept declining for a long while after that. It was down almost as low as $50 by ~10/2008 and again in 7/2010. It's been rapidly climbing lately and closed at $85.97 today...