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Oil may hit $100 per barrel 2009/2010

Oil may hit $100 per barrel 2009/2010
-MoneyBlog- Oil prices may surge to $100 a barrel sometime in the next two quarters as the U.S. dollar weakens against the euro, Deutsche Bank energy economist Adam Sieminski said Friday.
“We think the dollar could weaken further to $1.60 against the euro and it implies pushing oil prices to that threatening triple-digit level,” Sieminski told Reuters. A weaker dollar could mean “oil prices have even further to run,” but a rise to $100 a barrel may hurt an economic recovery, Deutsche Bank said in a research note. “We believe that $80 oil is not high enough to derail the global recovery, but our economics team would start looking for weaker overall consumption at $100 a barrel prices,” the note said. Oil prices rose to a one-year high of $82 earlier this week, after rallying 17 per cent since Oct. 10. That rise coincided with a rise in global stock indices and a weakener dollar, which plunged to a 14-month low above $1.50 per euro this week

.Oil, priced in dollars, has been moving in an inverse price relation against the dollar. Global oil and product inventories remain well above average levels.”The ‘traditional fundamentals’ are improving, but only slowly,” he wrote.OPEC members could be put in a “difficult position” when they meet in December to consider whether to boost oil production and cool prices.”

OPEC may want to calm the market with more crude, but it’s not clear that refiners have an appetite to take it,” Sieminski wrote. Deutsche Bank has kept its 2010 oil price outlook at an average $65 a barrel, below today’s price near $81. Sieminski said the lower price outlook was in part due to still high global inventories. Global oil demand plunged last year amid a financial crisis and after oil prices spiked to a record above $147 in July, before falling to nearly a five-year low near $32 in December

I anticipate us being in triple digit territory for the benchmark crude—West Texas intermediate- –by the end of the winter. And I anticipate gasoline prices by the Memorial Day weekend, which is usually the peak of the North American driving season, approaching $4 a gallon, or a buck-thirty, buck-forty a litre prices that we saw in Canada.
Oil filled radiator heaters help users to successfully warm any room in their house. The heating units are handy which makes them very good in winter months.

Goldman Sachs is calling for $85 oil by the end of 2009
T Boone Pickens is calling for $100 oil by Q4 2010
Morgan Stanley is calling for $105 oil by 2011