$90/ Barrel Oil Just ahead?

I have been seeing this on my price charts for over a month now, and none of the fundamentals shaping up in the market are saying any different. $90 oil translates in $3/gallon gas in the US and $1.25/litre here in Canada.I expect that we will see this next month IMO.

Might be time to dust off the portables and buy the pad machines before much longer! lol

Well Ed, I will just say that many insiders did not forsee $50 oil this year either.Only thing for sure that you can expect is the unexpected. $90 oil in real inflation adjusted terms would take the price only slightly higher than it was in 1981 when it topped out at $80/barrel as measured in 2004 dollars. Do not remember the world coming to an end then either. Biggest risk today if the $90 scenario happens is the 3rd world countries having a massive debt default all around the same time. If that happens, some bankers are going to loss some money, but the world will still go on.

Russia is the only country that has the capacity to threaten the USA in military terms at this point in time, and with oil near $90, they would be making so much money from the oil they export, that there is no chance of that happening in the near future. For that reason, I do not share your concern about the world being in any danger. It would cause the US  to speed up the transition to the hydrogen economy however, and no doubt encourage energy conservation in a very serious way that up to now has been avoided, so in the long term, it could be viewed as positive.

Superglide Ken wrote: Hopefully we will be into a "Hydrogen" economy by then. Still is at least 20 years away though.

This from the Aussie forum::

Author	Topic : Dreaming!
royalblue VIP Member	8/10/04 : 20:31:44      Driving today and saw a beautiful sight! (No not the curvy 2 legged kind!) It was about 10m long, 3.5m high and had steam rising out of an exhaust stack at the rear. Followed it for a while and admired the fact that this Mercedes powered vehicle was transporting people around and the only emission is steam! No smelly diesel, no noxious fumes and quiet as!!! The technological wonder is a hydrogen fuel cell powered bus. Makes me wonder, what technology we may have at our fingertips in say 10, or even 5 years time!
aussteam VIP Member	8/10/04 : 20:46:53      Miniture Nuclear Reactor powered TM, that's what I'm dreaming of. "Feel the Power" Ron
Freshaire VIP Member	14/10/04 : 2:22:39      saw that yesterday as well, ash, driving down Stirling hway Peppy Grove.. weird-arse looking thing, enough steam coming out of it to be looking for the whistle that is bound to be on it somewhere!

Shorty

That wont help them this time, Mr Steamer. The OPEC nations can't produce enough oil output to meet the new demand that is coming out of China. China don't care either. They just build the higher cost into the product prices they charge. It still beats the prices that American manufacturers can produce. In 4 short years, the production of goods out of China will exceed the goods output of the United States, putting them into 1st place as manufacturer to the world. In just 5 years, the number of cars produced there will exceed the number made in detroit. This is the new reality that North America is faced with.It is not something that will be reversing anytime soon.

By a year from now, the output of oil will begin declining all around the world , and growing demand will run right into shrinking supply. Then $100+ oil is coming. Too bad the debt load in Canada and the USA will not allow the west to win the bidding war for it.

 The war with Iraq you see was never really about any WMD, it always was about oil. I posted an article about that on ICS 2 years ago. The Bush government has known that this supply demand crunch was coming since at least 4 years ago, and wanted access to the Iraqi oil supplies to deny China access to the world's 2nd greatest reserves by getting there first, which they did by making up the WMD story so they could invade and take Saddam out. It is the reason that Korea, a true threat with WMD was ignored, but Iraq, with the oil , was not.I never disagreed with that objective BTW, since North America needs access to that oil, and I would rather we got it than the Chinese.

 America has set up 37 permanent bases in the region as a result. What was not counted on was that the Iraqi's , with the help of the other fighters from surrounding Islamic states , would fight back and keep production restrained to only 2 M barrels per day or less because of the instability still happening there. It was planned to have the production up to 4 to 6 Million Barrels by now.Life's a bitch sometimes, and dosn't go as people plan. That is why it is crunch time now. Prepare to dig a little deeper for your fuel from this time forward, cause this is a permanent change to higher fuel prices that is happening, and will accellerate as the Chinese increase their car purchases in the years ahead at a very rapid rate.

Bump!

Missed that big jump last week!

Oil is DOWN since this Kenny post...only has to double in price in the next 20 days for Kenny to be correct.  Now I know where the millions he made selling his companys went, why he stayed at the Kampground in Vegas, and why his chickens are hungry! 

Natural gas at $7.678....kenny wrong AGAIN!