Oil nears $123 on $200 oil prediction, supply concerns

[RedEarth]

Source: (AP)

NEW YORK (AP) — Oil futures blasted to a new record over $122 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.

A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday's buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say.

The Energy Department raised its oil and gasoline price forecasts, but also predicted that high prices will cut demand more than previously thought.

..............

Oil prices have nearly doubled from about $62 a barrel a year ago, which Goldman sees as a sign that the world is in the midst of a "super spike" in oil prices. Analyst Arjun Murti said in a research note released Monday that prices would ultimately force demand to fall sharply.



Read more: http://finance.myway.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d90g99no0&

[LynzM]

1. Can we stop with the oil speculation, already?

I mean, the cost of actually producing the oil can't have doubled since a year ago, can it? The demand hasn't doubled... it seems it's all speculation about what *might* happen in the future. If the price of oil goes up on the *speculation* that the price of oil will go up, then where does that terrible cycle end?!

[MessiahRp]

8. No kidding...

It's not even about supply or demand so much as it is about future worries. Look we know oil is running out but it's not going to be out tomorrow so speculators need to stop acting so erratic and insane and let the market relax a little.

Of course if I was running the world we'd be running solely on solar and wind power by now and cleaning up the world as a whole.

Rp

[endarkenment]

15. What is running out is new supplies of cheap oil.

Oil is not going to run out entirely anytime soon, it is just going to get, as we are seeing, inexorably more expensive. The futures market has not been terribly erratic, it is pretty much a steady increase since 2002:

[cstanleytech]

26. Now we need a banner to unfurl saying

"Mission Accomplished" while Bush and Cheney stand by and the oil execs hand them bags of money.

[David__77]

18. Oil was probably too cheap before.

The developing countries simply didn't have their act together. Countries like the US are very smart in implementing selectively protectionist policies (i.e., agriculture subsidies) and certainly maximize their profits on hi-tech goods. Why shouldn't oil-rich countries be equally as smart?

[tridim]

2. It's just that easy when you control the entire market.

If I speculate my house is worth 50 million, will I get 20 million for it? Doubt it.

[napi21]

3. I heard someone today say the spike is because the market thinks Shrub

is going to attack Iran! I didn't think he would do that, but the market usually is right about it's predictions. Sure some scarey stuff! I wish I knew how we could stop him!!!!!

[Warpy]

4. Supply concerns are 100% related to the continued

pResidency of King George the Stupid.

Don't kid yourself that anything but a switch to a Democratic administration will do anything to lower prices, and that means a Democratic administration that doesn't threaten oil exporting countries with more unwinnable war.

It's about the WAR TALK, nothing else.

[Enrique]

5. don't worry

we're gonna get a gas tax holiday. :eyes:

[eringer]

6. Its Time to Nationalize Our Oil Wells

Tell the oil companies to put that in their pipe and smoke it!

[Psephos]

31. The US has three percent of world reserves. What are you going to do about the other 97%? n/t

[eringer]

34. Nationalizing Oil Will Bring new Exploration in Anwar and Off the Coast of Florida

Once the oil companies are nationalized, the American people will rethink their position on pumping oil out of these sites. The day that occurs, is the day oil drops to $60 barrel.

[Nihil]

35. Hey, good move! Trash the planet *even* *faster*! Yay!!!!

How about this instead:
Drive the price up to $200+ per barrel and get "the American people"
to rethink their position on wasting everything under the fucking
sun for the sake of their sheer selfish stupidity.

:grr:

(And yes, I know that *some* Americans are very good at conservation,
efficiency and the environment but tossers like the previous poster
are just poster-children for the rest of the good old "way of life is
not negotiable" morons.)

[ronnie624]

37. Hear, hear! n/t

[Lone_Star_Dem]

7. As soon as the US packs away its war drums these insane increases will subside

This is not market demand nor reserves driven but rather speculation as to if the US is going to step in yet another pile of dung in the ME and/or if our economy is going to crash.

In other words, this is a direct product of our leadership for the past 7+ years.

[Lorien]

12. As they say; if Coronel Sanders was president and the price of chicken was

skyrocketing....!

[Jack_DeLeon]

19. I disagree as long as we fund China by buying thier goods...

they will use those funds to compete with us by buying oil and the like.

I think that is the biggest contributer to the current mess.

[Lone_Star_Dem]

22. Oil nearly doubling in the past year isn't due to China's consumption.

It's due to speculation in the futures market which is being fueled by the war in Iraq, the US rhetoric toward Iran, the instability of the US economy and the declining value of the dollar.

[Skink]

9. When President Obama invests the Iraq money in Hybrid/renewable energys..

nuff said.

[Lorien]

10. He said he was going to do that?

Link?

[khaos]

21. lol.. that was funny

[daggahead]

11. Gas Station Owners

Remember the gas boycott of last year? That worked SO well ...

We need to have gas station owners shut off their pumps for a weekend. That is where the boycott needs to start.

If gas station owners are to be believed, they barely make any money from the sale of gas. They make more selling gum, coffee and smokes.

Well, let's see if they're willing to tell the oil companies to stick it.

[mcollier]

13. Not that simple

Our entire infrastructure is built on oil availibility. PEAK OIL has arrived, the suffering as a result to our energy policy really begins...

[barnel]

14. 200 is BS, but a lot of this is devalued dollar

and that's very real

all of the fed stimulus has gone into the pockets of bankers, the price of gas and food for everyone else

[Tandalayo_Scheisskopf]

16. The government could induce a cooling shock quickly.

Release oil from The Strategic Reserve. Sadly, as if.

[ronnie624]

38. Lowering gasoline prices

would only encourage ignorant Americans (the overwhelming majority) to become complacent, thinking everything is going to be fine. What they need is to be shocked into consciousness. But they also need readily accessible sources of accurate information about the world and the seriousness of the situation we find ourselves in.

Hopefully, we'll get more than mere platitudes from a Barack Obama or Hillary Clinton administration. Hopefully, one or the other will be willing to take on a corrupt and rotten system that is in dire need of reform, starting with the quasi-legal system of bribery of legislators and the regulation of propaganda from our 'news' media. The job will be a tremendous one, as the forces of corporatism and fascism are very powerful and now have a strangle hold on our government that will not be easy to break. The job is indeed a big one.

[high density]

17. $200/bbl will certainly screw up demand

I think we're going to see $80/bbl before we see it hit $200. The bubble is going to pop from this speculative garbage.

[natrat]

20. maybe but US demand used to be a big deal now its GLOBAL demand

[BeHereNow]

27. Always good to come across a thinking person on DU...

Global demand is the operative-
China has plenty of capital and
a surging thirst for oil.

Too bad duh'murikkka.
You lose.

Sold down the river by your beloved corporatist government.

BHN

[Winterblues]

23. I remember not that long ago when $30 a barrel was considered high.

Back during the Clinton years....

[gatorboy]

25. Yes and I remember that the Republicans were out for blood because of those "Extremely High" prices.

So where are you now, cowardly republicans? Hmmmmmm?

[Psephos]

32. Well, I remember in 2006 Pelosi's promise to implement a "commonsense plan to lower gas prices"

Prolly get around to that right after impeachment and defunding the war.

:eyes:

[ryanmuegge]

24. Just in time for those stimulus checks. By God. What a fucking coincidence.

[BeHereNow]

28. K&R-Now where ARE those Energy Task Force meeting notes Mr. Cheney?

Just saying-
BHN

[superkia]

29. I dont think it has anything to do with demand, even the oil execs...

said that it should be around $60 a barrel. As Americans we have stopped being involved in anyway in our government and they realize this, you can look at all kinds of things that have just deteriorated for the average citizen's, while the wealthy still live the same lifestyle with no change. Whatever we allow, they will do...why not!


"The true Democracy gives everyone hope, a true chance for happiness. A true democracy is of the people, being owned, and ran by the people, and is for the people. The poor do not have a chance for happiness, or power to do anything about it, especially in an Empire where the ‘bottom line’ is what the Empires fights for and not you."

[Hulk]

30. How about I predict oil prices at $250 a barrel. There, watch me be "Mr. Right"

This is not rocket science. As long as these criminals run our government, we'll be bled to death by the oil companies. WTG george.....ya f*ckin' idiot!

[Wednesdays]

33. And gas prices have jumped 10 cents already

at many stations in my area, in anticipation of the oil price spike, which is in anticipation of the future oil price spike. Is this madness, or what?

[Tyler Generation]

36. SOARING, RUSHING, SKYROCKETING!!!!!!!!!!!

Can the mainstream press give that shit a rest! Yes, energy and food prices are consistently rising, but these headlines are ridiculous. Bread goes up 2 cents = PRICE OF BREAD SHOOTS INTO THE STRATOSPHERE, WE'RE ALL GOING TO STARVE TO DEATH!!!!!!!!!!

[Javaman]

39. Do I hear $130??? nt

[NickB79]

40. Peak Oil

I've been saying that for the past 3 years, and things are unfolding just as predicted.

But I'm sure someone will come along and tell me we have plenty of oil any minute now....

[newfie11]

41. Does anyone think this is all about getting the US to switch to EUROS

Just curious