Oil Prices Hit New High, OPEC Chief Says $200 a Barrel Possible

[nebula]

Source: Reuters/VOA

April 28, 2008

...Meanwhile, the president of the Organization of Petroleum Exporting Countries says oil prices could go as high as $200 a barrel.

...According to the Reuters news agency, OPEC chief Chakib Khelil told Algeria's government newspaper, El Moudjahid, the high prices are a result of the dollar's slide, and have little to do with oil supplies.

The record oil prices come as some economists expect two of the world's biggest oil companies, Exxon Mobil and Royal Dutch Shell, to announce record first-quarter profits.



Read more: http://www.voanews.com/english/2008-04-28-voa36.cfm

---

Get ready for a shocker: $7-10 per gallon gas by the summer.

[Selatius]

1. I don't see it going that high at the pump unless the US bombs Iran, therefore cutting off Gulf oil.

In such a war, it would be nearly impossible for tankers to safely traverse the Hormuz Strait.

[nebula]

2. It has more to do with falling dollar

then war with Iran, according to the article.

[natrat]

4. not rocket science-surging demand china india and flat supply combined with shit dollar

[Psephos]

12. Since 2001, dollar down 35%, oil up 500% - doesn't compute

Meanwhile, US gasoline demand is down several percent from last year, and inventories are quite robust despite refinery cutbacks. World oil demand and world oil supply are currently in rough equilibrium.

The supply and demand fundamentals don't support this bubble, which means it will pop. Like house prices last year, and stock prices in 2000, to cite only two recent examples. I will keep my digital camera handy to photograph the speculators and hedge fund geniuses jumping from their windows, because it's just a matter of time.

My back of the envelope calculation is that the underlying sustainable price of oil in dollars based on actual supply and demand is around $50-60/bbl.

Tulips, anyone?

[unblock]

15. though chinese and indian demand is way up

on the other hand, that's in no small part due to the previously STRONG dollar that led to rampant imports, i.e., moving production overseas.

the comparatively low dollar will stem some of this eventually.

i do tend to think that oil has to be due for a correction and that $200/bbl isn't happening any time soon.

even if mccain (gag!) wins.

[hunter]

16. Show me $60 bbl oil again...

... and I'll show you a U.S. economy that's a smoldering ruin.

I don't see signs that anyone has the spare "production" capacity to drive prices down.

The taps seem to be full open everywhere you look.

Any way you look at it, oil production is not "sustainable," so it doesn't make a lot of sense to talk about sustainable prices. If the peak is not now but later our grandkids are still going to suffer this reckless foolishness of ours.

This dependence upon fossil fuels was a very bad idea.

[Selatius]

5. I think 7-10 dollars a gallon at the pump is high balling it even with depreciating Dollars.

The US Dollar would have to lose roughly half its value between now and summer for the price at the pump to essentially double from 3.50 now to 7.00/gallon or higher at summer.

[natrat]

3. sustained 10$ a gallon means pretty good depression

[Lone_Star_Dem]

6. Their speculation of $200 a barrel oil would imply they're expecting the dollar to tank.

Not a good sign at all.

[high density]

7. The dollar hasn't slid THAT MUCH

What a bunch of BS. The high prices are a result of rampant speculation.

[Yavin4]

8. Well, The Fed Is Cutting Rates Again This Week, Further Weakening The Dollar

The Fed is doing all that it can to prop up Wall Street for the coming election. They've made the political strategic choice that rising inflation is better than a Wall Street crash for the Republican chances.

[DemocratInSoCal]

9. I Can't Wait

I fully realize that it's going to impact a lot of people who don't deserve it.

But, I am looking forward to seeing the MONSTER TRUCKS, SUV'S, HUMMERS, ETC., in my area, that SPEEEEEEEEEEEEEEEEEED as fast as they can to each red light. That TAILGATE, as if to intimidate me to let them pass.

I will laugh as they suck up more gas in their 5 Mi/Gallon guzzlers, and complain, complain, complain about gas prices.

Any Moronic Republic who complains about gas prices, can go Fuck Themselves.

[Indenturedebtor]

11. Yeah but unfortunately

They'll drag the rest of us down with them.

Don't forget guys that this guy would love to see $200/barrel oil. That means he makes more money. Talk like that is designed to drive the price up... and maybe they know something we don't about peakoil :shrug:

[Altean Wanderer]

19. Yes, that may be the only silver lining of sorts - we can point and laugh n/t

[MilesColtrane]

10. During his campaign, when Bush said he'd "jawbone" the Saudis...

...I guess he didn't mean talking to them.

[Doctor_J]

17. Yes, to get them down from $20/bl. Cheney called $20 the sign of a

failed presidency. Another campaign ad awaits for this fall's GE

[corporatemedia]

13. "So?"

[scarface2004]

14. holy sheet!!!!!

kiss your lifestyle goodbye...it's over!!!!

[Altean Wanderer]

18. Blaming it All on the falling dollar is only meant to cover ...

the fact that constrained supplies ARE a major factor in today's oil prices. World oil and condensate production has been on a bumpy plateau for the last three years, and with rising demand from "Chindia" as others point out, the prices must go up. Saudi Arabia has also recently hinted that they may not meet or choose to meet their prior production goal of 12.5 million barrels a day, but rather staying where they are at 9.5 mbpd.

They see the writing on the wall, we're near peak if not at it (a few years out at most - 2012 say) and they don't want to increase production if they can manage their resource by limiting production. With prices only set to go higher, they have nothing to lose by holding back some. It's the wise thing to do in any case. Oil is a precious resource, in some ways too precious to be used as a fuel. So whether we're at peak or not, we're at a practical peak of sorts.