CNBC Report: Oil Going to $300 a barrel

[Rufus2007]

Return of High Oil Price Predictions: CNBC Segment Warns of $300 Oil

If you want to know when the economy is making a comeback, keep a watchful eye on the frequency of high oil and gas price reports in the news.

--snip--

Kevin Kerr of Global Commodities Alert explained $300 oil was still a possibility - since the momentum to drill for more oil, improve infrastructure and develop other sources of energy has waned with the decline in the price of crude.

"Look, $300 isn't going to happen overnight," Kerr said. "But the same situation that we had, when we saw oil prices get to $147 - the same things still exist. We do not have more drilling. We do not have more infrastructure. Alternative energy has basically dropped off the map."

http://newsbusters.org/blogs/jeff-poor/2009/05/09/return-high-oil-price-predictions-cnbc-segment-warns-300-oil">Read More Here

[graywarrior]

1. Gas in NH went up more than 20 cents overnight.

[sarge43]

2. Aye yup.

Down here it was $2.09 last night , today it's $2.29. Mo foes.

[Zynx]

3. There is a serious question: Was oil ever justified at $147 a barrel?

The answer is no. Commodities were the third in a sequence of bubbles that went from the NASDAQ to housing to commodities, particularly oil and copper.

[Andy823]

7. I agree

And something needs to be done now in order to prevent another "bubble" where the speculators push the price up so they can make a fortune. I thought last year congress was going to do something to prevent this, but I have heard nothing about it. Energy and food should never be bought and sold on the commodities market! These are things we all need to survive, and allowing greedy speculators to manipulate the prices is not right. They tried to claim it was all "supply and demand" that took price so high last summer, that was nothing more than BS! Congress can put a stop to this, but those in the leadership positions need to start working for the people of this country, not the rich corporations that are keep putting money in the pockets of congress so they can get richer while everyone else suffers.

[Lint Head]

4. During the financial meltdown prices on goods went up because

oil prices went up first. That is the time line. Dick Cheney needs to explain what was talked about in the energy meetings and Bush needs to divulge just what his relationship between Saudi Arabia and his previous oil fiasco. This is engineered price gouging. It is not a case of supply and demand.
Right wing ideology is dying and this is a way to bring it back. The oil industry is owned and run by greedy right wing thugs. Low oil prices have aided a part of the small recovery we have seen so far. Raising them will insure Obama and left wing ideas will fail.
When oil goes up. Everything else that relies on oil will go up too, from the price of eggs to the price of a mortgage. The wealthy will get wealthier and the poor will continue to get poorer.
:dem:

[GeorgeGist]

5. Psst ...

this is capitalist code for

'Don't invest in alternative energy'.

[bananas]

6. Updated: "the current rally in oil is clearly a revival of absurd speculation"

Updated by Noel Sheppard at 11:20 a.m.: I wanted to add that the current rally in oil is clearly a revival of absurd speculation ignoring fundamentals. After all, oil inventories are now at their highest levels in almost nineteen years. Add this to reduced demand as a result of a global economic slowdown, and today's prices should be NOWHERE NEAR $60/bbl.

Even with a $10 to $20/bbl geopolitical risk premium, oil should be between $20 and $40/bbl. Readers are encouraged to review Raymond J. Learsy's recent article on this very subject, "Why are We Paying $50 a Barrel for $20 Barrel Oil??"

The only reason oil is now at these levels is because speculators are once again bidding it up irrespective of the current supply and demand. This makes CNBC's $300/bbl discussion irresponsible, for they are once again assisting the oil bulls in driving up energy prices which hurts all of us who are looking to cut expenses in a soft economy.

As last year's run to $147/bbl was clearly a speculative bubble that CNBC helped inflate, maybe these good folks should learn from that and not allow themselves to aid and abet bubble filling again.

[Andy823]

9. Exactly!

They got away with pushing prices up in the past, and they are doing it again. I posted an article about how storage around the world is running out, and that they are storing oil on tankers that just sit off shore. Speculators have been buying up oil and storing it hoping that something happens and they can jack the prices up like they did last year. Congress can put a stop to this, and they talked a good talk last year about doing something, but so far nothing has happened. The article I posted said that oil prices will be done to at least $40 a barrel by July. Bush allowed things to work for the oil companies, now we need to put a stop to the madness and prevent it from every happening again.

[bananas]

10. found it

What happens when they run out of room?
Will gas prices come down, or will somebody start a war to send prices up again?

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=5619618

To much oil, no space to store it

http://www.telegraph.co.uk/finance/newsbysector/energy/5274121/Rising-reserves-of-unused-oil-put-strain-on-storage.html

Rising reserves of unused oil put strain on storage.

Record inventories of crude oil are building up around the world threatening to swamp storage space and belying optimism in the markets about an imminent economic recovery.

Rotterdam, Europe's biggest port, is running out of room for more oil, US reserves are at a 19-year record and tankers are being used as floating storage off Britain's south coast, even though OPEC is reducing production.
"From a commodities point of view, world trade is appalling and the demand is just not there," said Ahmad Abdallah, commodities analyst at Gavekal, the economics consultancy. "All inventories are rising – they are bursting at their seams."

Goldman Sachs estimated last week that global storage capacity could be exhausted by June. Government figures in the US, the world's biggest oil consumer, put reserves at 375m barrels, rising by 4m barrels in one week in April alone.

<snip>

[hunter]

8. Don't tell -- a long time ago my friends and I rolled a few super balls down the face of Hoover Dam.

(Honestly, kids shouldn't be left unsupervised until they are at least 25 years old...)

I can tell you the balls didn't follow any sort of predicatable path.

The price of oil will follow a similar path. The face of the dam represents the low price and is related to the physical costs of producing the oil. The high price will be bouncing all over the place until the ball reaches the bottom, a place where oil will be a much less significant fraction of the energy mix.

[depakid]

11. Desp[ite people's wishes to contrary- we'll see $300 per barrel oil

If and when the world economy recovers. My bet would be June-July of 2011.