The prevailing wisdom is that oil prices will move down. They have already dropped from over $78 to $72, and most observers think that is only the beginning. Troubled financial markets and the potential of a slowing global economy should being demand down.
Don’t tell the president of Venezuela, nut job Hugo Chavez any of that. He wants the world to believe that he can control the price of crude, which is only partially true. According to Reuters: "I’ve always said that oil prices are headed straight to $100 per barrel," Chavez said during a televised speech. His argument is simple. Supplies are dwindling and consumption is still going up.
Chavez must be speaking with the oil think tank The International Energy Agency. Late last week the FT quoted the group as saying: ”Undersupplying the market in this context could bear considerable risks,” the IEA said, referring to ongoing Opec crude oil production cuts.
The question before the House comes down to this. Will troubled credit markets hurt the developed nation economies enough to bring oil down much further or will long term demand and lack of supply growth drive prices up?
Oil is going to $100.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
