Oil at $75 a barrel: Cheap!
According to the apparently infallible geniuses at MarketWatch, crude oil is well on its way to triple digits . That’s right, $100 per barrel within a year. Let’s see … gas in San Francisco is about $3.50 a gallon. Add 33% (the difference between $75 and $100, natch) and we are at $4.65 a gallon in 2007. Now that’s what I call inflation!
At $40 we said crude would hit $60. At $50 we said it would hit $75 within a year. Some scoffed and called me a fear monger. Now that we’re at $75, I’m telling you that under the right conditions oil could not only hit, but sustain a $95 to $110 price per barrel by the end of the year. I say it’s not only likely, but almost inevitable within 12 months.
Could it be true? Well, only time will tell. But with the wicked combination of a idiot oil man in the Oval Office, the prospect of continued instability in the Persian Gulf, and ever-increasing demand for the black gold, it doesn’t seem like much of stretch.