Is $200/barrel oil around the corner?

[trev0006]

Is $200/barrel oil around the corner?

After months of outrageous oil price spikes, we realize that the shock value of $100 to $105/barrel is fading fast, so we're going to skip ahead to $200/barrel. The finance wizards at Goldman Sachs have raised their outlook for 2008-2012 oil prices by $15 to a high end of $135 per barrel, but a major disruption could make matters much worse. How bad could it get? Goldman Sachs seems to think a spike to $150-$200/barrel is a possibility.

Goldman Sachs correctly predicted in 2005 that oil prices would reach the $50-$105/barrel level, and it thinks there's a chance that prices could drop down again, but inventories would have to rise over a couple years for that to happen. We can hope, but we won't hold our breath.

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[climer]

Not sure what this is doing in the photo and video gallery.

But in any event, it's very possible that oil could reach $200 a barrel.

All it takes is a terrorist attack that destroys a refinery in Saudia Arabia. If the Ghawar field goes up in smoke, that's 5 million barrels a DAY which won't make it worldwide. Assuming it takes a year to rebuild, that's almost 2 billion barrels which won't make it to the worldwide population which consumes around 70 million a day.

[old&slow]

If oil reaches $200...watch the economies of many nations falter!