$200 per barrel oil coming our way!?!

[Melensdad]

OK, the article clearly states that supply is BARELY meeting demand.

That Saudi Arabia is pushing out more oil than it has produced in DECADES.

That Libya is back to producing oil at pre-war levels.

Oh, and not mentioned in the article, Obama says that if we actually drill/pump more oil it won't help. But clearly it would, as more supply would drop the price

Bend over folks, its coming our way . . . OH and if you want to "blame" the oil speculators, then take a look at the very last paragraph which shows quite the opposite of what Obama seems to believe.

Oil Prices at $200 a Barrel? Some Think It's Coming
Published: Wednesday, 21 Mar 2012 | 12:38 PM ET Text Size
By: Kate Kelly
CNBC Reporter


Signs that crude futures may hit much higher levels are converging, say oil traders and analysts, some of whom predict that Brent [LCOCV1 124.12 --- UNCH ] crude could reach $200 a barrel within the next 12 months.

Mark Lennihan / AP

The biggest issue, they say, is that global crude supply remains uncommonly tight — a scenario that’s unlikely to be alleviated any time soon.

Even though Libya’s oil has largely returned online after the political disruptions that took it off the market last year, and Saudi Arabia is generating its highest output in three decades, the available crude is just barely meeting demand. The summer driving season in the U.S., which begins in April, could put further pressure on prices.

The cash, or physical price, of crude — which refers to what’s paid for the commodity when it’s shipped from a producer to a buyer — has largely exceeded the price of Brent futures since mid-February (a situation referred to in oil trading as “backwardation.”).

The effect on the home front is already being felt: In the U.S., gas prices are at $3.86 per gallon, according to OPIS, a stone’s throw from the $4 mark that created big concerns last year.

Still, it’s unclear that releasing oil from the Strategic Petroleum Reserve, a maneuver the White House made last June 23 in hopes of easing prices at the pump, will be much of a fix.

Gas prices were roughly $3.60 when the drawdown occurred, and were depressed for only a few days before climbing back over $3.70 a month later. Because of that, many traders tend to dismiss the recent chatter in Washington about releasing more oil from the SPR as bad politics.

“The seaborne oil market is extremely tight,” says one bullish hedgie. “As much as the politicians love blaming speculators, if the market was up on speculation and not fundaments, the physical market would be trading at a discount.”