OPEC President’s Oil Price Prediction: $200 a Barrel
Apr 28th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsOPEC President Chakib Khelil said he can see crude oil prices reaching $200 a barrel because the market is driven by the the US dollar’s slide, according to Algerian government newspaper El Moudjahid.
According to the paper: “Questioned about a possible rise which would go to $200, the minister did not rule out this eventuality, explaining that this rise is indexed from now on to the fall in the dollar or to the rise in the dollar.”
Peak Oil expert Byron King was ahead of the curve on the role of the dollar in pushing up oil prices. Last week Byron wrote this in his Energy and Oil blog. “A declining dollar hurts all Americans, and every dollar holder in the world. Call it ‘Battered-Dollar Syndrome.’ A declining dollar works against long-term investment. The late economist Kurt Richebacher used to say, ‘A declining currency destroys capital.’ Still, somebody must think it is OK to devalue the dollar, because that is one of the key drivers behind the rising price for oil.
“The world oil supply has become very tight. Demand is rising. The price for oil would ordinarily be going up to clear the market. But with all the ‘extra’ money creation coming out of the US Fed, oil prices are going up even faster. And I should add that just the expectation of loose money is also inflating the price of oil. There is probably $15-20 worth of ’speculation premium’ built into every barrel.
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No matter how much the dollar declines, you can not excuse the amount of profits made by the oil companies and the damage that the prices are causing in our country. I hear every excuse in the world as to why the prices are as high as they are and continue to rise. So, if these excuses are valid, why are the record profits continuing to rise with the gas prices. It is nothing but lies and propoganda. The United States government is sending out stimulus check to try and help the economy. This is going to do nothing but give people a little bit more money to give the oil company. Exxon/Mobil just recorded a profit of over 40 Billion dollars for 2007 and that is nothing compared to what they will be in 2008. The oil companies could send out a $2k gas card to every car owner in America and not even touch their profits. This is too much like right to help Americans. I never thought in my life time I would ever see any one business dominate this country the way the oil companies are doing now. This Government, both Democrats and Republicans have completely robbed the American people and given the oil companies the right to legaly steal from every American. The executive of the oil companies and the government are not better than a group of street thugs who rob people. Oil companies just steal on a much larger scale. I have never been afraid of my government before, but I see this country headed in a direction that literaly scares me to death. I worry about what my child and family are going to have to live with in the near future. My question for the Oil Companies is, how much is enough? How much money do they have to profit to be enough? How much is enough? People that have to make more and more money and can not get enough have a sickness. It is sick to profit from peoples demize. Once again, How much is enough? Where does it stop? How many people have to suffer or even die to make enough for the oil companies to say we have made enough money.
Sincerely worried, Jim………………
Jim,
That the price of oil has been rising as the amount of M3 money supply has been growing is a fact. In fact, about 87% of the move in the price of oil can be explained by the increase in money supply.
Who’s “excusing” profits made by oil companies. Most smart investors are happy to see profits in whatever company type of company they invest in.
Chris Lowe