Will Oil Hit $100 a Barrel?

BusinessWeeks says it could happen even without a break in the supply.

They don’t explicitly mention Peak Oil, but it’s a subtext.

Given no shortage of crude oil in storage, the only explanation for the current spike is that the physical market’s leverage on price has been temporarily suspended, or is being overridden by a futures market driven by a huge influx of capital. These investors are keying on future levels of risk to supply, rather than the immediate supply-demand balance.

It would probably be very smart to invest in oil futures at this point. It will go up, it’s just a matter of time. With GW in the White House, it’s gonna be bumpy ride, so strap in and be careful. Let’s hope we can stop him from invading Iran and destroying our economy and liberty in the process.

But I doubt it. People would rather watch American Idol.


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