Thursday August 21, 2008

OPEC warns oil prices could rocket to $500 per barrel

peakoil.com -> belfasttelegraph.co.uk :

The nightmare scenario of oil reaching $500 a barrel within a few years was raised by a member of OPEC's governing council. Such a rise would also pose a serious threat to economic growth in oil importing countries. "If the dollar's value continues to decrease and if the political crisis becomes worse, the oil price would reach up to $500," Iran's OPEC governor Mohammad Ali Khatibi said in an interview. "If there is another war in the region, it will not only be Iran's oil not reaching the market, but rather the oil of the whole region would be cut from the market," Khatibi said. "In that case, we will not have a price rise. We will have a price explosion."

$5000 gold, $500 oil. If the 10:1 ratio holds up till then. Could turn out to be conservative. If global hyperinflation kicks in, the sky isn't the limit and we're not just going to the moon - the new limit would be somewhere in the next galaxy. For a preview of a possible global future, refer to Zimbabwe and their $100 billion banknotes. We're probably long past soft landing scenarios now. Hope for the best, prepare for the worst.

See also :

1. OPEC: High and volatile prices may be new norm
2. OPEC : Peak oil is near
3. OPEC keeps output steady in face of $100 oil
4. OPEC chief warns of $200 a barrel oil price as NYMEX crude oil hits $119.93 record

(2008-08-21 22:10:34 SGT) [Energy] Permalink

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