Crude Oil Bull Runs For $100 Barrel Oil

The crude oil market bull has been relentless on it’s run for $100 a barrel crude oil.

With crude oil well over $90 a barrel, closing at $91.86 on Friday, oil market analysis agree that it is no longer if crude oil will top $100 a barrel, but when.

Experts also believe that there’s a good chance drivers will see $3 gasoline in the US before the end of the year. “Three dollar gasoline in this market is unavoidable,” said Stephen Schork, publisher of the industry newsletter the Schork Report. “At this rate, we’re going to see $4 a gallon.”

Europeans must be envious of what to them are cheap gasoline prices in the US, even at $4.00 a gallon. Gasoline is already over $6.00 a gallon in most European countries and can go as high as nearly $9.00 a gallon. Of course, as gasoline prices increase in America they will be increasing in Europe as well.

The oil bull market is driven not only by speculative fever but by a growing imbalance of supply and demand as peak oil supply conditions kick in while demand is soaring in a world full of geopolitical tensions. For example, the recent increase in sanctions imposed upon Iran by the US and the tough talk from the US that goes with it and the possibility of the Turks invading Northern Iraq to strike at PKK forces there has been supportive of higher crude oil prices.

Should the US actually attack Iran some analysis think we would see an immediate further large price spike and oil could shoot up to as much as $150 a barrel.

Clearly world markets have a lot of sorting out to do at these and perhaps soon to be even higher prices for oil. High oil prices are good for some nations and companies and a disaster for others. For one thing higher prices for oil create huge cash inflows for producing nations. How they allocate that flood of money will in part determine the winners and losers in the great oil game.

And as for the consumer? Many will have to change their energy consumption habits if high prices remain in place for long as is now probable. The downsizing of homes, automobiles, travel, and commuting patterns will have to take place or else folks will suddenly have to start making a lot more money, eating a lot less, and generally cutting back on all expenditures except for energy.

Long term oil prices above $100 a barrel will change the world as we in the developed world know it. We had best start preparing ourselves now.

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