Oil hits new record $117 a barrel - expect it to hit $150 by 2010

[Hemidakota]

Expect more speculation to occur by future market holders as they are tying to push the cost per barrel to 150.00 dollars. Yet, the best part? It will eventual collapse the oil market due to consumers purchasing all electric plug-n-play vehicles starting 2010.

As I monitor this scenario since 2003, I come to know that the oil inventory is now at a 8-year high and still growing. No matter what is being said, the consumer demand has been steadily dropping since 2006 and this is a worrisome for big oil. The goal now is cutting back on output. Last round, refineries are at 81-percent production and dropping.

Don't bother government since they do sell oil inventory to make money.

By Leanan(Paul Laudanski (mailto:admin@peakoil.com)) NEW YORK (Reuters) - Oil prices hit a record high $117 a barrel Friday as jitters over Nigerian oil supplies outweighed a rally in the dollar and fears of an economic slowdown in giant energy consumer China. US light crude settled up ...
Peak Oil News - Peak Oil News

[Alaskagain]

You are such an optimist HD! I (the great psychic Karmini) predict the $150 mark will be hit by July 4th of 2008!!!!!! (that's what was in my hermetically sealed envelope).

I'm buying a bicycle.

[Mullenite]

By December of 2008!

[Hemidakota]

LOL...perhaps since 'greed' rules for now. However, maybe it is time to collapse the oil market.

Today it is now 118.00 dollar per barrel - Futures Market

[Moksha]

Those oil people really have us over a barrel.

[Loudmouth_Mormon]

Man, it sure would have been nice if we'd invaded Iraq for the oil like so many people used to claim...

[Misshalfway]

I'll tell you what.....

If I wasn't mormon I'd be swearing up a storm when I fill my gas tank!

I like that little bit from the movie "Dan in Real Life" as he fills his gas tank in the opening scenes.... "There goes her college education..... glug, glug....and her sisters too."

[Mullenite]

Blood for Oil?




Blood for Oil?


Fig2: Inflation and Crude Oil Prices

Do you remember gas lines and consumer panics in 1991? Of course not, because we did not experience gas shortages in 1991. The U.S. was not cut off from Middle Eastern oil in 1991, nor were we cut off from Middle Eastern oil in 1973. In the six months prior to the embargo, OPEC’s total production averaged 31.4 million barrels per day (MMBD). During the three month embargo, OPEC’s production averaged 29.6 MMBD.[32] So the size of the production cut in 1973, was about the same size as two different disruptions the world recently faced in December 2002 with political unrest in Venezuela and again in April 2003 with the war in Iraq and worker unrest in Nigeria—but I am sure we will not remember these recent disruptions in the same vivid way we remember the oil embargo.[33] If the world’s oil prices oil did not rise that far, and production was not cut that severely, why was our experience in 1973 during the Arab oil embargo so bad?

One key reason the 1973 embargo had such an impact on our collective American psyche is because the Nixon administration attempted to mitigate the impact of rising oil prices by imposing price controls rather than letting the free market operate.[34] Price controls, not the actual oil embargo, were the biggest culprit behind the widespread gasoline shortages at the time. According to Jerry Taylor, natural resources studies director at the Cato Institute,[35]

“Price controls imposed in August 1971 by the Nixon administration prevented major oil companies from passing on the full cost of imported crude to consumers at the pump. ‘Big Oil’ did the only sensible thing, it cut back on imports and stopped selling oil to independent service stations in order to keep its own franchises supplied. By the summer of 1973, gasoline prices were exploding, pumps were running dry, and long lines were commonplace. And that was before the Arab oil embargo or production cutbacks were announced.”



Afterwards, even the Saudi oil minister Sheik Yamani admitted, “[the embargo] did not imply that we could reduce imports to the United States . . . the world is really just one market. So the embargo was more symbolic than anything else.”[36] Indeed, the 1973 oil crisis was caused as much by the bad economic policies of the Nixon administration as by production cuts in OPEC.

This is also why economic embargoes have a dismal record of success in changing the behavior of other nations.[37] Unless all countries are willing to support the embargo, the target nation’s leadership can merely obtain whatever products they want through the countries that choose not to participate. The only way the U.S. could truly be cut off from oil in the future is if every major oil exporter chose to forbid sales to the U.S., and to forbid sales to the nations we trade with – a highly unlikely event.

[Hemidakota]

I am surprise that Utah is almost the same as with California prices. Utah does not import oil but use what is pumped from the shale internally. Now, I would call that greed. Nothing to do with the old 'supply and demand model'. I would be skeptical as a Bishop or SP in allowing them to participate in the temple. [humor]

Another speculation today...just love the amount excuses we can throw out to the masses. See people are so - missed informed on what is truly happening since demand has dropped since 2006 [US] and now sitting on a 8-year oil glut [check GOV annual records]. Even in Cali, the way to create artificial demand is pump less and make excuses. 2003 was at 12.0 Mil Barrels per day to now 1.2 Mil 2007 records revealed. Yet, we have another two big oil reserve finds in Kern County.

The price this morning bumped over 120.00 dollars. Sad part, it will effect everything else and in the end, will be their own end doing of a fine industry as a whole since now auto manufactures are now looking at Hybrids as a band-aid and going to plug-n-play electric vehicles for the future. Even, by passing Fuel cell technology since its still controlled by oil companies. Sad to think, in my lifetime, people rather gamble away their own future and the economy for money.

[JohnBirchSociety]

Originally Posted by Hemidakota

I am surprise that Utah is almost the same as with California prices. Utah does not import oil but use what is pumped from the shale internally. Now, I would call that greed. Nothing to do with the old 'supply and demand model'. I would be skeptical as a Bishop or SP in allowing them to participate in the temple. [humor]

Another speculation today...just love the amount excuses we can throw out to the masses. See people are so - missed informed on what is truly happening since demand has dropped since 2006 [US] and now sitting on a 8-year oil glut [check GOV annual records]. Even in Cali, the way to create artificial demand is pump less and make excuses. 2003 was at 12.0 Mil Barrels per day to now 1.2 Mil 2007 records revealed. Yet, we have another two big oil reserve finds in Kern County.

The price this morning bumped over 120.00 dollars. Sad part, it will effect everything else and in the end, will be their own end doing of a fine industry as a whole since now auto manufactures are now looking at Hybrids as a band-aid and going to plug-n-play electric vehicles for the future. Even, by passing Fuel cell technology since its still controlled by oil companies. Sad to think, in my lifetime, people rather gamble away their own future and the economy for money.

If only we had a free market with real "money", instead of the contrived market of capitalism driven by the boom and bust of fiat currency, controlled by unelected officials.