guys you know I'm the biggest bull on the oil companies.
I'm saying it'll spike down low temporarily from some type of negative stimulus.
I'm on record saying 85 in 5 yrs and $100 bbl/ 5gal gas in ten.
80 a barrel prediction as oil soars again
Angela Balakrishnan
Friday July 13, 2007
The Guardian
The price of oil jumped to an 11-month high yesterday, moving even closer to record levels hit last summer as fears mounted over shortages in supply.
Speculation in the world's most actively traded commodity, rapidly rising demand and reports that production would slow over the next five years pushed Brent crude up to $77.07 briefly during early-afternoon trading, within $2 of the all-time high of $78.65 set last August.
Investors said hedge funds and pension funds were key drivers behind the latest rally. "This rally is very much fund driven," said Graham Sharp, director at Trafigura, a commodities trading group. "The entry of long-only hedge funds into the market is a major factor this time around. We wouldn't rule out Brent hitting $80 this summer."
Article continues
Maintenance work on oilfields in the North Sea has tightened supplies and helped push Brent, seen as the best indicator of the global market, significantly higher.
The unexpected closure of a North Sea pipeline this month cut oil output from at least one group of fields, operator ConocoPhillips said. Chevron's Erskine field, which produced an average of 10,705 barrels a day in March, has also been affected by the shutdown.
The market has been jittery all week after the release of the International Energy Agency's medium-term oil market report warning that demand would increase faster than expected over the next five years while production would struggle to keep up. Traders are nervously awaiting the IEA's latest monthly report out today, which will give an updated snapshot of global oil demand and stocks.
Data from the US Energy Information Administration showed gasoline stocks in the world's largest consuming country remained 8.2m barrels lower than a year ago, and the summer driving season there is expected to last at least another month.
http://business.guardian.co.uk/story/0,,2125371,00.html
Looks like it will be a short 5 years....