80 Dollars A Barrel?!

Here's soemthing you won't see on the news here in the US. Oil Prices may be heading for a much higher hike than we are being led to believe...

news.yahoo.com.../afp/20050303/bs_afp/opecoilprice_050303134221

Oil Prices Could Hit 80 Dollars in Next Two Years: OPEC
Agence France Presse
Thursday 03 March 2005

Kuwait City - Prices of crude oil could surge to as high as 80 dollars a barrel within the next two years but such a level would not last long, OPEC's acting secretary general was quoted as saying.

"I can affirm that the price of a barrel of crude oil rising to 80 dollars in the near future is a weak possibility," Adnan Shehab-Eldin told Kuwait's Al-Qabas newspaper.

"But I cannot rule out (the possibility) of oil prices rising to 80 dollars a barrel within the next two years," he said on Thursday.

Yahoo news pages are notorious for dropping articles from their archives, so another link to the story here...
www.truthout.org...

The reality is that these predictions of higher oil prices are becoming a self-fulfilling prophecy. There's actually little technical basis for oil to be trading over $50/barrel. Heck, US oil inventories are significantly higher than at the same point a year ago, when oil was trading in the upper $30/barrel range. US gasoline inventories are at record levels. I think these prices are the result of media-driven oil price paranoia and market speculators seeking to take advantage of it. And the oil companies are feeding off it through price gouging, with earnings at record levels. There's also a very large premium built into the prices due to the Iraq war and terrorism threats. Once people start getting wise to it all, I think oil prices are going to collapse as commodity traders realize that the fundamentals just don't support oil prices this high.

Heh, was looking through my old threads here... Can I get a "I told you so" out of this one or what LOL

a year ago, when oil was trading in the upper $30/barrel...