[Sixstrings]

$this->bbcode_second_pass_quote('', '[')b]Crude Back At $100, Highest Since June 15, Going Much Higher Courtesy Of European Monetization Start

Courtesy of the IEA which earlier loudly announced 'No More SPR Releases' (although like the ECB earlier announced it would not accept defaulted Greek debt as collateral only to reneg, this is total bullshit), and another massive taxpayer funded iteration of EFSF monetization-infused moral hazard, crude is back to $100. Since the EFSF will very soon be expanded to over $1 trillion and since this is nothing less than Europe's version of QE, and paradrops money that just like the Fed's own daily POMOs will ultimately find its way into the market, as holders of toxic Greek debt shift their assets into risk holdings, we expect crude to surge to $110, then $120, then $130 and so forth until another global depression has to be called in. And, naturally, the same with every other hard asset that can not be diluted.
http://www.zerohedge.com/article/crude-back-100-highest-june-15-going-much-higher-courtesy-european-monetization-start

[Cloud9]

Systemic collapse has many symptoms, but it is oil that is the blood of the beast.

[Fishman]

Excellent posts Six and 9. We all have our opinions. It certainly looks peak oil as the causative agent to me, with QE more as the whipped cream on top. Honestly, that is more of opinion than data driven. Prep resources are certainly getting more expensive. Basic 10/10/10 fertiizer (I prefer organic Espoma products) has nearly doubled over the last 2- 3 years.

[Pops]

You're still watching landlocked WTI. Louisiana Light (oil on the GOM available for shipment) has risen more or less steadily from about November of last year to average about a $20 premium to WTI - same as Brent.
I can't link the chart

Expect WTI to take a big jump ($20?) next year when pipes to the oceans are completed from Cushing and Alberta.

[Bill Hicks]

BofA stated yesterday that Brent Crude will be $175 by 2012. Even if the Brent-WTI spread stays around $20, that would mean $5 gas in the U.S.

[Cog]

The American economy can't take $4 gallon gasoline much less $5. We will spiral down into demand destruction before we get there. My call is we will never see $135/bbl Brent much less $175/bbl.

[Sixstrings]

$this->bbcode_second_pass_quote('Bill Hicks', 'B')ofA stated yesterday that Brent Crude will be $175 by 2012. Even if the Brent-WTI spread stays around $20, that would mean $5 gas in the U.S.

[Pops]

I'd be surprised to see $150 oil for any length of time, same with $4 gas. 'Course I've been wrong before.

This is inflation adjusted one year average price:

[Sixstrings]

$this->bbcode_second_pass_quote('pstarr', 'A')ctually I've long assumed we'd see a new version of the early 1970's stagflation, a consequence of USA peaking (1972) and the 1973 Arab oil embargo/crisis. The combination of high unemployment and inflation confused economists and political analysts at the time, and today few understand it was a consequence of oil depletion.

[Sixstrings]

$this->bbcode_second_pass_quote('pstarr', 'N')o really. Look at outsourcing from an energy perspective. We in the USA and most modern 1st world countries need a crap load of petroleum just to live, and eat, and drink. The Chinese don't.

[Fishman]

My word, I think we almost have a consensus here. Pstarr, I have to say the energy perspective comment is one of the most astute I have read here on peak oil in some time. Perhaps we can compete with our creativity (please don't attack that statement, I understand its failings)

[Geodesic]

Add this into the mix and we get $500. oil.

http://english.aljazeera.net/indepth/op ... 34786.html

There is almost "near certainty" that Netanyahu is "planning an attack [on Iran] ... and it will probably be in September before the vote on a Palestinian state. And he's also hoping to draw the United States into the conflict", Baer explained.

[babystrangeloop]

$this->bbcode_second_pass_quote('Geodesic', 'T')here is almost "near certainty" that Netanyahu is "planning an attack [on Iran]

[Quinny]

I too look at life through 'crude' tinted lenses and despite all the protests that this and previous downturns were not caused by resource squeeze think the evidence is stacking up in our favour. Back in the 70's I was a young teenager and keen scientist & mathematician arguing the fact that we couldn't keep growing forever. I was of course ignored and ridiculed.

My uncle is a very experienced business person who I have spoke to about PO and his only rebuttal is that the human race is very resourceful (sic) when it comes to solving problems. When people quote facts about the housing bubble, the derivatives trading and the currency printing etc being the cause of economic problems, I see these simply as the results of such 'resourcefulness' on the behalf of TPTB.

TPTB have to keep kicking the can down the road. What politician would get elected on a manifesto of less jobs and economic contraction? What CEO would keep his position with a strategy of less sales next year?

My big worries are that this ponzi scheme carries on till the 'Cree' quote from Joe becomes reality and the environment is fubar or/and resource wars devastate the planet.

The only hope is that the 'resourcefulness' is re-directed towards real solutions to the problems we face and that some kind of weird science like cold fusion helps solve the energy problem AND we move towards permaculture based food production AND our economic and political systems evolve into ones where 'powerdown' is acceptable AND population control becomes and accepted way of life. I'm not naive enough to think that the 'greed' motive can so easily be overcome, but live in hope that people will understand that sharing and conserving the riches we possess is more important than stealing wasting and consuming them.

My 'crude' tintied glasses though force me into a position where I believe fear trumps hope and we really are past PO being a problem and we are now in PO as a prediacament territory.

[ki11ercane]

$this->bbcode_second_pass_quote('Geodesic', 'A')dd this into the mix and we get $500. oil.

http://english.aljazeera.net/indepth/op ... 34786.html

There is almost "near certainty" that Netanyahu is "planning an attack [on Iran] ... and it will probably be in September before the vote on a Palestinian state. And he's also hoping to draw the United States into the conflict", Baer explained.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('Quinny', 'B')ack in the 70's I was a young teenager and keen scientist & mathematician arguing the fact that we couldn't keep growing forever. I was of course ignored and ridiculed.
...
The only hope is that the 'resourcefulness' is re-directed towards real solutions to the problems we face and that some kind of weird science like cold fusion helps solve the energy problem AND we move towards permaculture based food production AND our economic and political systems evolve into ones where 'powerdown' is acceptable AND population control becomes and accepted way of life.

[Quinny]

I unfortunately have to agree with you EU. Suppose the emotional part of me longs for an E-Cat or something similar to be true. In fact not just something, but anything. Logically I can only think we are FUBAR.