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Oil prices may surge to $220/barrel if political unrest in North Africa halts exports from Libya...

Oil prices may surge to $220/barrel if political unrest in North Africa halts exports from Libya and Algeria, Nomura Holdings says in a research note. OPEC spare capacity would be reduced to 2.1M barrels/day, Nomura forecasts, similar to levels seen during the Gulf war and when prices hit $147 in 2008.
Comments (12)
  • Power Hedge
    , contributor
    Comments (955) | Send Message
     
    $220/bbl? Kiss any recovery in the USA goodbye!
    23 Feb 2011, 10:31 AM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    exactly, pulled into cash last week. you think Lehman had an effect on the economy wait till $200+ barrel becomes reality.
    23 Feb 2011, 11:00 AM Reply Like
  • Duude
    , contributor
    Comments (3338) | Send Message
     
    $220/barrel is a speculator's dream price. Even if there was an outside chance, it would only be for a moment at best. While oil is generally viewed as having inelastic demand, that all goes to the wayside as prices increase. In developing nations, driving an automobile becomes more of a luxury as prices increase. Far more will be ready to go back to public transportation. That is also the case to a lesser extent here in the states. Additionally, both the US and China have relatively large reserves that can be tapped to offset a drop in supply, and other OPEC nations are naturally greedy enough to provide all the supply they can as prices rise. No, $220/bbl is a pipedream.
    23 Feb 2011, 10:45 AM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    Duude,
    We have no public transport, just roads....yet you think developing countries have public transportation? You've obviously never been to Brazil, India or Peru? The bus systems are a joke. Our reserves are drops in a bucket compared to daily demand. $220 a barrel here we come maybe not this year but for sure in 5.

     

    Yet we still cry "drill baby drill". No foresight. Cut education and alternative energy...do it for long enough and you will end up where we are. All the eggs in the oil basket.
    23 Feb 2011, 10:58 AM Reply Like
  • woollyB
    , contributor
    Comments (1019) | Send Message
     
    Classic sign of a big bull run (closer to a top than a bottom) when analysts start tripping over themselves in the race to extrapolate out to the highest price targets.
    23 Feb 2011, 11:04 AM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Did you cut and paste this comment from 07? I am sure i have seen this exact same comment years ago.
    23 Feb 2011, 11:06 AM Reply Like
  • Duude
    , contributor
    Comments (3338) | Send Message
     
    Bozerdog:
    I forgot. $220/bbl oil is also a dream of the far left. Far higher oil is the only hope for alternative energies in their goal of becoming only somewhat more expensive than oil, .....that is, after more government subsidizing of course. I mean, the best the US has to date is ethanol which is heavily subsidized, still costs more, crappy for engines, hurts fuel mileage, and doesn't even help the environment. But apparently its the best alternative we've got.

     

    Actually, I have been to South America and they do have public transportation. I didn't say it was good, nor do I believe that everyone in emerging nations even drives. But public transportation is also available in China and India, and especially in the more populated regions. Those that do drive, and it is a minority, may opt for another mode of transport as prices rise.
    I do believe as oil gets above $100/bbl, fewer miles will be driven by the average American. We know this because evidence from 2008 proves it. The end result is demand will keep oil from reaching anything near $200/bbl.
    23 Feb 2011, 01:47 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3528) | Send Message
     
    Yes, but at least we've quit drilling in the Gulf so the fishies are safe. (Oops, forgot Cuba's drilling).
    23 Feb 2011, 01:57 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    time will tell...on $200/bbl

     

    It matters less and less how many miles the average american drives. Add the cars in China, India, Russia, Brazil. On a global scale the number of drivers is sky rocketing. Most burn the same thing.

     

    paul.kedrosky.com/arch...

     

    It's not a far left comment, it's an explosively growing demand on a finite resource.
    23 Feb 2011, 02:17 PM Reply Like
  • The Energy Trader
    , contributor
    Comments (26) | Send Message
     
    lets take at least $100/bbl to start talking about higher prices. These guys always wants to be the first to put ridiculuos prices, so, if prices hit sometime they will claim credit.
    23 Feb 2011, 10:52 AM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    we are at $100/bbl
    23 Feb 2011, 02:38 PM Reply Like
  • George.H
    , contributor
    Comments (43) | Send Message
     
    Now the United States really may appreciate the meaning of choice between stability and "other less ideal things".
    23 Feb 2011, 11:46 AM Reply Like
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