Wednesday, April 9, 2008
Oil up; inflation next
Oil roars to record over $112 on U.S. inventory drop
Oil surged to a record high over $112 a barrel on Wednesday after a government report showed a sharp drop in U.S. inventories ahead of the summer driving season. How long can we continue to ignore the high oil price?
Posted by who stole my pension? @ 08:38 PM (632 views)
4 thoughts on “Oil up; inflation next”
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layers says:
@Cornishman – did you say $160 / barrel “sooner than you think”? Whoever did, it’s going to happen. Things are hotting up again.
paul says:
OMFG. $112 is massive. Only last month the media was talking about $100 being unsustainable.
drewster says:
For those of you who missed it, there was a report in MoneyWeek last week entitled “Could oil hit $160 a barrel – next week?”. Apparently there are some strange supply disruptions which one expert thinks could cause a spike to $160. It’s not clear how long the spike may last. I’ve listened to the full interview with the expert, he sounds like he’s done his research! I’m tempted to place some bets by buying into an oil ETF.
also sold to rent says:
We are already past the peak of ‘easy’ oil. The price will now be constrained by the non-conventional oils (tar sands, coal-to-liquids etc) and renewable alternatives. It’s far from clear what price that will be, but so far 100 dollars plus hasn’t really dented demand too much and there is as yet almost zero infrastructure for industrial scale alternatives. This is a critical point for the (off web site topic) peak oil debate. Can we increase supply meaningfully? BP and others say we can produce over 100 million barrels per day, but will we ever get over the 85 million we’ve been stuck at since 2005?
If not then don’t be surprised to see prices go way way – and I mean way – higher than they are now in the next few years (once we get past this recession).