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OPEC president Chakib Khelil believes that the already staggering price for a barrel of oil could continue to rise. Citing the low value of the U.S. dollar, Khelil says that investors are likely to continue to place their bets on oil, a necessary commodity. With current prices hovering around $120 per barrel of dino-juice, the sixty percent increase mentioned by OPEC's leading man would place the going-rate darn near $200 a barrel.
Those of us living in the U.S. have seen our gas prices rise at an alarming rate, but Whatcar in the U.K. highlights more problems for those living across the pond. A strike at the Grangemoth oil refinery in Scotland could cause a ripple effect which would reach consumers just in time for the summer driving season. OPEC has chosen not to increase their output to help curb the supply and demand problem. Kinda makes us long for the electric car, huh?

[Source: What Car]


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    • 1 Second Ago
  • 9 Comments
      • 7 Years Ago
      Hello, Doomers -- they're talking about oil prices rising *because the dollar falls*. Why is it so hard for doomers to understand that as the dollar falls, oil rises, and vice versa? And that people hedge against the falling dollar in oil, making the problem worse?
      • 7 Years Ago
      Hopefully it will continue to climb. That's the only way we will see any real change.
      • 7 Years Ago
      The OPEC countries are pumping about all they can.

      As far as peak oil is concerned, the peak everyone's talking about is the peak in oil discovery, not the peak in oil production. That peak won't come for a while. However, the increase in production is not keeping up with the increase in demand, hence the price of oil is rising. Basic economics people. It has nothing to do with OPEC nations holding their "oil machetes on the American economic neck" or corporate greed.

      Speculators in the commodities market have had the largest recent impact on the price of oil, but that has more to do with the falling dollar and whatnot and isn't worth getting into.
      • 7 Years Ago
      "oped chose not to increase their supply to curb fuel prices" what company does they are reaping mega profits right now. i am an advocate of green but i firmly believe that if we forced all companies to pump oil at maximum efficiency then the price would urn right back down to 300 dollars a gallon or 297.
      • 7 Years Ago
      They have their oil machetes on the American economic neck and will happily, slowly and painfully saw the economic head off the shoulders of the western infidels.
      • 7 Years Ago
      The only fear: that this fuel crisis will soon end as all the others did. Big Oil is making record profits - this whole thing almost looks orchestrated to help win a conservative election, possibly to justify wars or a stupid tax-free summer 'relief' ploy.

      If electric can establish a foothold (Eestor anyone?), one third of the world's nightmare can come to an end. We need a fuel crisis of at least five years, long enough for everyone to buy electric... and fly jets less. I would love to take a vacation with a blimp. Why the rush?

      With gas gone the world can face the far tougher bastion of death: coal. That's when the real battle begins.
      • 7 Years Ago
      If oil companies pumped at maximum efficiency they would produce less not more.
      Pumping faster often reduces the total amount that can be extracted, this is especially true in Mexico.
      OPEC isn't producing more because they can't, only Iraq has any significant spare capacity but they aren't producing as much as they used to for some reason.
      • 7 Years Ago
      This is where we find out if the peak folks are right or not.

      According to the peak theory, output cannot be increased, and will fall gradually, regardless of demand. The price will continue to climb until demand goes down to match supply. Oil and gasoline has very low price elasticity: when the price of gas doubled, demand fell as you would expect, but only by less than 1%. What that means is that the the price will need to go very high to compensate for falling production.
      • 7 Years Ago
      The high oil price is because no one in u.s.a is producing and selling bio-fuel from algae, an infinite source of basically the same liquid then petroluem but way much cleaner. We can get rid 100% from petrol in less then 1 to 2 years. One other advantage over dirty petroluem is that we can feed the cows too with algae so we can reforest the planet and use less space for agriculture. So all in all: peak oil, pollution, energy security and inneficiency, tar sands, egr(exhaust gas reciculation), lithium ion batteries,
      over-population, engine downsizing, start-stop capability, imported petroluem would have been just an error made by ford in the beginning of the century when he invented the ford model-t but without the necessary algae bio-reactor that would have complimented it.

      http://www.youtube.com/watch?v=cyoKTbxerpQ
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