Oil due for a slide

Rising worldwide demand on all fronts (though driven by China in particular), continuing OPEC uncertainties led by Iran plus diminished production from Venezuela, and constrained refining capacity in the U.S. and some fresh concern about summer hurricane patterns, would seem to auger for still-higher oil prices to come; perhaps taking aim at the all-time price peak near $78 seen last July.

This pattern looks very similar to what crude oil prices did in late 2000 before a nearly 50% drop, and more recently in 2003 before a 20% drop. So a pullback to at least $55 before the year is out is my prediction, though we may need to go a bit higher first.

marketwatch