OPEC: Weak Dollar Will Drive Oil to $170 a Barrel

Monday, June 30, 2008

Hello $5.00 a gallon gasoline?

OPEC President Chakib Khelil predicted that the price of oil will climb to $170 a barrel before the end of the year, citing the dollar’s decline and political conflicts.

“Oil prices are expected to reach $170 as demand for fuel is growing in the U.S. during the summer period and the dollar continues to weaken against the euro.”

Political pressure on Iran and the depreciation of the U.S. currency have caused a surge in oil prices, Khelil said.

This entry was posted in News, Oil and tagged , . Bookmark the permalink.

15 Responses to OPEC: Weak Dollar Will Drive Oil to $170 a Barrel

  1. DCVET says:

    If U.S. politicians including Barack Obama, don’t tone down the rhetoric with thinly veiled threats of bombing Iran, nevermind $170 a barrel oil by year’s end.

    Expect oil to soar to $200 a barrel.

    This will translate into $7.50 a gallon gasoline. An amount that will cripple the American economy.

  2. Woodcliffe says:

    We have enough oil under the ground in South Dakota, North Dakota and Montana to last another 100 years.

    All it takes it the political leadership to get to it in an environmentally safe way.

    The first steps to energy independence begins with the next president. I hope Obama is up to the task and ends this nation’s reliance on foreign oil. It’s killing us.

  3. feminazi says:

    Everytime a politician fans the flames of possible war with Iran, gas prices climb. This isn’t an accident. I think they’re doing it intentionally. The day the Israeli defense spokesman who said war with Iran wasn’t “if” but “when” saw oil climb $4 dollar a barrel on his rhetoric. Thanks, Israel for nothing.

  4. JCH says:

    It isnt Isreals fault, OPECs fault or even GWBs fault. It is the fault of the American public who continue to ride the giant SUVs and monster trucks down the highway. Nobody has the right to cheap gas. Oil is a finite product and to waste it on silly things like trucks with 8 inch lift and tractor tires is crazy.
    Gas should be expensive. Its the only way people will conserve. Diesel is $12/gal in England (my relatives live there) their economy isnt in shambles. They conserve and drive small fuel efficient cars.
    Hummers will soon be scrap metal. I personally drive a diesel benz which I make bio from used french fry oil. Costs me 60 cents per gal.
    Im laughing at these Suburban drivers who pay $100 per fill up when they whine about gas prices. Quit whining and buy a fuel efficient car.
    Gas prices are going nowhere but up.

  5. TOM339 says:

    JCH – Actually, if you listen to AAA, Americans are driving less and dumping their “giant SUVs and monster trucks.”

    Maybe if you paid attention you would know this.

    You sound very uninformed.

  6. JCH says:

    Really Tom? So I guess all the giant SUVs I see on the road are just mirages? All the hopped up trucks are simply hollywood frontal facades? If you read the AAA report closer you will see the reduction is around 1-2%. Hardly a finger to OPEC.
    Do you see less Tahoes, suburbans,explorers, armadas, H2s on the road? I sure dont.
    The decrease in in miles driven is ONLY this year. Its gone up every year since GWB took office.
    You see my friend, I am in the car business. My business restores and converts Mercedes diesels to run on bio. Only the last two years have people been going nuts over fuel prices. People have bought these obcene hulks like they were going out of style the last eight or so years. So much so, infact, that the US car makers have stopped research on small 4-cyl motors and instead produced large V-8 s up to 400 cu.in. They put them in everything from Explorers to chargers. Now they cant give them away. Too f-ing bad for them. If you are stupid in business you will fail. No tears for Detriot here.
    The behavior of Americans over the past 8 yrs is why we are in this mess. We had ample warning after the opec embargo in the 80s. The fact that Americans didnt heed it is sheer stupidity and the results are here and going nowhere soon. Explorers get 15 mpg if you are easy on the pedal. Thats ridiculous given the fact that oil is a finite resource and running out.
    You really need to do a little more research. You sound very uninformed.

  7. TOM339 says:

    Really JCH?

    What the fuck is it about SUV’s that has you so spooked? Did someone try to drive one up your asshole whole you were sleeping?

    FACT: SUV’s sales are down
    FACT: Drivers are dumping their SUV’s
    FACT: Ford is closing one of the SUV’s plants due to lack of demand
    FACT: Used car lots are clogged with previously owned SUV’s
    FACT: Many new SUV’s get better mileage than older Toyota sedans

    Writing, “The behavior of Americans over the past 8 yrs is why we are in this mess,” just proves you’re an un-American, little punk.

    Go hope on your 10 speed with a jar of raw oatmeal and drive into a lane of speeding SUV’s.

  8. Peace Nick says:

    Tom 339,

    Ouch! I’ve never seen you so over anyone.

    But you’re 100% correct. The Ford Escape Hybrid (my brother has one) gets better mileage and emits less pollution than my 2001 Subaru.

    It’s a cool looking car and I may buy one next year after I get my 2008 tax returns back.

  9. mbmdl says:

    I drive a Honda Element. I guess this qualifies as an SUV and I love it and wouldn’t dream of getting rid of it for a smaller car. I feel safe in it, I can drag the kids around in it and I feel comfortable driving it. My mileage is OK — about 30MPG. If someone doesn’t like it, tough patootee.

  10. JCH says:

    Tom, my deluded friend. How patriotic of you. Lets work backward from the “Americans do nothing wrong” platform and sure well arrive at arabs, rich people, Israelis and tree huggers to point the finger at. How convenient.
    I think its great that your sphere of thought begins a week ago. Weve been gulping gas for years now and only recently have the things you list happened. It wasnt so 2 yrs ago. Escalades were going for above list and Hummers were in vogue. The fact is that the consumption oriented society we live in is certainly a cause of gas prices. If you agree that global warming is caused by fossil fuel burning then you must look first at those pumping the most carbon in the air. That would be us. If gas prices are a result of demand for the most part, then you must look at those using the most and wasting the most. Again that would be us.
    Its not just SUVs either. It is wasteful V-8s. Im sure everybody has heard that lumpy, over-rich idle of a circa 80s pickup idling at the gas station. It is a sound that one will only hear in the good ole USA. It is waste and it is because of gas so cheap nobody gives a shit. I bet those will go the way of the dinosaur pretty quick at $4/gal.
    You got me wrong about the SUVs. No bug at all, in fact they are making me rich. I have a 6 month waiting list for customers because I cant hire fast enough or find cars to convert. In fact if you have any mechanical ability and a green card…lets talk about a job. No bitterness here pal, its all good.
    Believe me, gas will get to $12/gal within 10 to 15 yrs. Ill be fine. I like oatmeal, but give me your add and Ill mail you my 10 speed. Youll need it before me.

  11. Randy Arroyo says:

    I don’t know about other regions of the country but here in San Diego, SUVs aren’t selling and used SUVs line the lots of dealerships as more and more drivers dump them for smaller, more fuel efficient cars. In fact, a pre-owned SUVs is an affordable car these days whereas a Toyota Prius sells for list and there is a waiting list for one. I’ll stick with my Honda Accord and plan to drive it until it falls apart while driving up the 15.

  12. TOM339 says:

    From Edmunds:


    American car buyers have been flocking to small cars, crossovers and hybrids so massively — and so quickly — that they’re threatening to tip the auto industry on its axis.

    They’re leaving behind trucks, large SUVs and, to a lesser extent, luxury vehicles of all kinds in favor of more fuel-efficient and less-expensive segments. An Edmunds.com analysis shows that this shift has precipitated dramatically over the last two months, both in terms of actual transactions as well as in shopping trends measured on the Edmunds.com site. Until March, this pattern of segment migration had been accelerating markedly but rather gradually.

    But a 10 percent increase in U.S. gasoline prices in March and April alone, to the realm of nearly $4 a gallon, appears to have provided the catalyst for a shift that is bigger and faster than any ever tracked by Edmunds.com.

    “Gas was getting close to $4 a gallon, and if you live in an area of high gasoline prices, with a vehicle with a big tank, it could cost you $100 to fill it up,” noted Jesse Toprak, executive director of industry analysis for Santa Monica, Calif.-based Edmunds.com.

    Gasoline prices rose 10 percent in March and April alone, to a nationwide average of $3.44 a gallon, noted David Tompkins, Edmunds.com’s executive director of industry analysis.

    And with gasoline prices having penetrated the $4-a-gallon mark in many areas of the country during May, Edmunds.com expects that May sales results — to be revealed June 3 — will show that the shift has grown further. “We’ll see the extremes continue to grow,” said Jessica Caldwell, U.S. industry sales analyst for Edmunds.com.

  13. Aunt Peg says:

    Here in Phoenix in the big dealerships lining Camelback Blvd., all you see are block after block of used SUV’s sitting in the dealer’s lots, with sales signs on them.

    On the otherhand, you can’t find a Prius to buy unless you’re willing to wait 3 to 6 months.

    Tom is correct. This is the end of the SUV.

  14. JCH says:

    I dont know what were arguing about really. I agree with Tom that the death of the SUV is at hand. I too have been to a Cadillac dealership and saw no less than 75 new Escalades sitting there. The guy said theyve sold 1 in the last 2 months..to a black dude with gold teeth. Who really thinks they will be driving this beast in 10 years? Maybe just Flavor Flav.
    My point was/is that the wasteful and entitled attitude of Americans in general (not you of course) over the last decade has contributed to this in a big way. The downfall of the US automaker is linked to this. Look, I have driven in a new Lincoln Navigator. Comfy as a leather sofa, big as a 1 bedroom efficiency in New York. If gas were never running out and pollution wasnt a problem, Id have one in front of my tasteful yet not ostentatious bungalow in a sec. That isnt the case however.
    Americans are like spoiled babies. They want their Navigators, they want cheap gas and they dont mind whining like children to tell you so. Take a look at Europe. That is us in 5 yrs (maybe sooner). A guy came to me a couple of weeks ago and wanted to trade a 2006 Suburban for a 1985 Merc 300d. I laughed in his face of course.
    I seriously doubt we will ever see gas in the $3 range again, NEVER. And we shouldnt. High prices is the only way to get people to conserve. In England they tax cars on the engine displacement. A 1.4 litre will cost around 400 pounds per year. A 2 litre around 1500 pounds (thats 3 grand) God only knows what theyd charge for a 7 litre (400 cu in) behemouth. Maybe thats what we should do.
    But I think this is all good. High prices will stumulate innovation in the car market. Battery powered, Hydrogen fuel cell, etc. Weve got some smart people working in the good ole USA. We seem to perform better when theres a pot of gold at the end of the rainbow. Thats Capitalism I guess.

  15. Rachel says:

    I used to want a giant SUV. I thought it would be so comfortable but the prices were beyond my reach. Now that gas prices in my area are $4.19 a gallon, the SUVs are cheaper but the fuel cost deters my ever purchasing one. I guess I’ll just stick to my Toyota and be happy with 32MPG.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s