Bill Murray

Barron's Banks on $100 Oil

I agree with others that oil is going higher. The Fed is hancuffed by the growing (yes, still growing) credit crunch and Saudi talk is just enough to make sure the pot doesnt get too hot causing the frog to jump out. I think there will be sideways movement and then another jump later this summer toward $150. By then, $130 oil will be a way of life so going from $130 - $150 will be "tolerable" as opposed to going from $100 - $150. Did anyone else hear the talks from other OPEC nations saying they would need to cut production to counter act a Saudi increase...? The sad thing is, there most likely is far more oil in the sand than anyone realizes. Think about it, if they were running out of oil reserves, would that be broadcast so the price would jump to $1000 until the last drop was gone???? If the bottom of the well were in sight, they would do everything they could to make sure they got top dollar, including and probably specifically by publicly stating the issue and causing panic. Instead they are hiding their cards and making everyone think the next tank of gas they fill up might be their last.