Spiga

100 dollar/barrel oil next two years?

THE WORLD IS RUNNING OUT OF OIL. As my prediction for $60.00 oil has been met (albeit i was off about 6 weeks) new price targets show higher levels coming. Perhaps JPL can find a comet with crude in it to drill off of?

Although the world for the most part is still in denial when it comes to the pending oil crisis, the markets haven’t been oblivious to these developments. Even though we are seasonally in a low demand period, the price of oil is quickly approaching $60 as we speak – an all-time high and an increase of $12 in the past month alone. The futures price of oil is now in contango (future price higher than spot) until 2007 and, early last week before the run-up in the spot price, was in contango all the way to December 2011 (the longest contract available). A contango in the oil market was practically unheard of as recently as the beginning of this year. However, the way events are unfolding, posterity may well show that buying a 2011 barrel of oil for $55 today was the bargain of the century!

makes sense why China and soon India will be buying oil companies.......

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