Written by Dan Watson
In my last column I predicted oil would exceed $100.00 per barrel and unfortunately that prediction has come to fruition. It would be great to say that I had mystical powers of seeing into the future but the prediction was a no brainer. Supply is limited and demand is on the rise: the only possible outcome is increasing prices. So, without fanfare, I now predict oil at $125.00 a barrel by mid summer. World reserves of crude oil are actually higher now than at anytime since the 1974 oil embargo, but as I detailed in Issue One the world oil market is now a commodities market and the price fluctuates with speculation. OPEC is toying with reducing production to insure prices stay high in the event of a worldwide recession. In the end, we here in the USA will see rising prices for everything we buy, not just diesel and gasoline.
