Michael Fitzsimmons

Fadel Gheit: Oil Prices to Remain Inflated but Don't Pass on Gas

to say that oil isn't trading on fundamentals after 2008's supply/demand thin margin, an oil war in iraq that took millions off the margin (and added a geopolitical risk that has not gone away), the current iranian crisis, and the fact that china is circling the globe locking up oil deliveries well into the future, is simply putting one's head in the sand. with all due respect to mr. gheit, he is overstated the role of financial manipulation. the fact is, all the issues i listed above will continue to firm foundation under oil, and if the world economy ever begins to function "normally" again, you'll see oil prices zoom higher and eclipse the $147/barrel high very easily - especially when you consider that oil is priced in U.S. dollars, and we've all witnessed where that is going. at the same time, the U.S. is awash in natural gas, and as pickens said on CNBC the other day, we're *stupid* not to use natural gas in the transportation sector.

Oil Will Peak at $150-200 - Barron's Interview

don't see oil at $75 ever again unless the US enters a deep-deep recession or depression. any lack of demand in the US will be quickly sucked dry in china, india, russia, and the middle east. we are entering the last oil crisis - a crisis unlike the political energy crisis of the 1970's, this crisis is a worldwide supply/demand crisis. the futures contracts will not allow the price to fall to $75 as people the world over will be glad to secure delivery at $80, $85, $90, etc. etc. you get the picture.