Oil May Go Up $250, Expert Says

Oil has lower down to $112 per barrel, as the US dollar gains back strentgh. But there are reports, especially that of the oil experts that oil may go up at $250 per barrel. Oil rich countries can ease the problem since they are the major suppliers of oil worlwide. But why can't they boost oil production?

A Bloomberg report also quoted information provider Global Insight as projecting that crude oil could peak in the US at $135 a barrel in the next two months. Oil might rise to $135 as the declining dollar draws investors seeking a currency hedge, before new supplies see prices fall, Global Insight’s Simon Wardell was quoted as saying.

And in the meantime, OPEC president Chekib Khelil too has joined the chorus, hinting at significantly firmer crude markets in the near term. Projecting that oil prices could even hit $200 a barrel, Khelil blamed weakness in the dollar and global political insecurity for the current market woes. Establishing a direct relationship between the sinking dollar and the ascending crude prices, Khelil claimed that with the dollar losing one percent of its value, oil prices rise by $4 a barrel and vice versa.

more...