Back in July CBS interviewed an oil tycoon after the US released their oil reserves to stem off the price spike at the pump. By then KE had ERC also fixing prices.
According to the tycoon his opinion was 2012 is when oil prices would spike back to $125 or even $150/barrel. He also said pump prices in US could spike to $5. That would be a record above the 2008 oil price spike. Everytime oil has an nasty price spike, economies go into slowdown and those that over leveraged go into recession.
Since Jan 2012 I've been looking at brent & WTI oil charts & I don't like their bullish patterns. Brent has already vaulted past $114 to confirm a retest of $125. When WTI vaults past $103, a retest of $115 will be coming. And with the persian tensions it is possible to see prices vault to nasty highs. It'll be difficult for net importing nations to control that imported oil inflation and their budgets & currencies esp developing econs will be under pressure once again like in 2011. Unless if the CBs & Fin Ministries find a way to print oil or avoid its importation...
The interview -
http://www.youtube.com/watch?v=e9G1KxcGGgw
15 yr trend chart of pump price in US.
http://www.gaspricewatch...chart.php?period=15year
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!