$105 a barrel

I just logged on to the internet when somthing caught my eye, I saw a little link that said oil could soar to as high as $105 a barrel if this really happens we are all in for a world of hurt. Not only will gas prices soar at the pump but everything we consume will increase as well, lets hope this doesn't happen.


Mack said...

Oil prices got to record highs before because the oil companies had a successful cartel and set the prices where they wanted them. considering the fact that oil producing countries couldn't keep what they had going before I doubt that they will trust each other enough to successfully set prices again, it is the prisoners delema all over agian.

BOB said...

If oil prices jump to $105 society will react. America will not continue to pay outrageous prices! America will either invent something better than oil or it will drill elsewhere.

homer said...

Obviously I'm not looking at the big picture when I say this, but the high gas prices really haven't affected me that much. It seems I might pay $5 or $6 more when filling up, but my life goes on as usual.

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Dr. Tufte said...

I think Goldman Sachs has to be taken seriously on this issue. However, they site a price range running from $50-105 per barrel. So, it isn't really fair to say that they are predicting $105 - picking the top of their range is just hyperbole.

One other thing to consider is that the linked article is awfully short on specifics. There isn't much there other than a claim that oil might go that high.

Dr. Tufte said...

-1 on Mack's comment for spelling errors.

Also, I'd like to emphasize that oil prices did not get to "record" highs because the oil companies had a successful cartel. The oil companies have never had a cartel. The oil producing countries have had a cartel, and one that hasn't been very effective for over 20 years.

Rex said...

I purchase my gas at station that takes three cents a gallon of for using their shopping card. My wife drives an average of 600 miles a month. If you figure this cost savings it comes out to 72 cents a month or 8.64 dollars a year at 25 mpg. If you figure the price of gas has risen about 15 to 20 cents a gallon this year we have spent 40 to 58 dollars more than last year. I guess all these price changes do affect us but how much is it really?

We may pay more at the store for items that are trucked in or on heating oil for our homes.