Opec President on Oil prices...could go to 200

[maddythebeagle]

OPEC president sees $200 oil possible: report: Financial News - Yahoo! Finance

"In terms of fundamentals, stocks are high, demand is easing, supply is satisfactory. Therefore normally, without geo-political problems and the fall of the dollar, the prices of oil would not be at this level," he was quoted as saying.

"The prices are high due to the fact of the recession in the United Sattes and the economic crisis which has touched several countries, a situation which has an effect on the devaluation of the dollar, and therefore each time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa," he was quoted as saying in brief remarks to journalists on Sunday

[HFWR]

I didn't know newguy was president of OPEC...

I'm hopeful the Fed will be able to reverse course late this year.

[TromboneAl]

Quote:

and therefore each time the dollar falls one percent, the price of the barrel rises by $4

Why doesn't it rise by 1%?

[waltwill8]

Oh, I see. He's a former World Bank Official.

High inventory, and slower demand means prices go up

I think they need to have an inventory reduction sale.

[chinaco]

There is a report that says $225/barrel by 2012 (4 years).

AFP: Oil prices to double by 2012: Canadian study

If the price of a barrel of oil reflects the price of gas... that type of increase would put gas at about $6 to $7 per gallon range.