$80 oil lurks

Growing demand, tight supplies, turbulent geopolitics, hurricane season – a witches brew for crude prices.

…So, with both the geopolitical scene and hurricane season heating up, will we see $80 oil in the next few weeks?

“I don’t see anything blunting the price rise until it disrupts our way of life,” said energy analyst Mike Fitzpatrick, who’s firm Man Financial has an $83 target price for crude by the end of September. “With the economy the way it is, that clearly hasn’t happened yet.”


The recent runup – crude is now above $72 but traded in the low $60s just a month ago – is the result of heightened tensions overseas, expectations of a pickup at refineries (read more demand) and overall a tighter supply and demand picture, said Antoine Halff, head of energy research at Fimat in New York.

On the geopolitical front, a truce between the Nigerian government and rebels who want greater local control over oil revenue is unwinding fast. Oil worker kidnappings have resumed in the African country, which exports over 2 million barrels a day of high quality crude.

CNN/Money