Will $150 Oil Be a Reality?
There has been a lull in the discussion around peak oil. Towards the beginning of this year, there was much talk about oil reaching prices as high as $200. Well, the discussion continues, and stock analysts have been predicting $150 oil recently. Its going to take some time to get there, but this report by Gene Epstein, is pretty convincing.
"…The continued short-term easing of oil prices should benefit the economy over the summer, only to exact a much larger payback later. The projected oil shock of spring 2012 will hurt the economic expansion, but not kill it, pruning about 1.5 percentage points from quarterly growth in real gross domestic product…
…The $110 price estimate comes from taking the midpoint between the market price on West Texas Intermediate oil traded on the New York Mercantile Exchange in New York and on Brent crude traded on the Intercontinental Exchange in London. While the recent unusual 10%-15% premium of Brent over WTI, which actually is of higher quality, has puzzled many analysts, those Barron’s polled agree that the lower price on WTI is potentially misleading…"
Find additional research here: http://turnkeyoil.com/2011/07/07/will-150-oil-be-a-reality/