Peak Oil Passnotes: $80 Here We Come

Resource Investor – To follow on from what we were talking about last week, it would be a brave man to bet against $80 later this year. In fact $80 will be an easy target if we get anything out of the ordinary happening, and most times ordinary is bad enough.

In 2005 we would not have had $70.85 oil if it had not been for Hurricane Katrina. Katrina spooked the markets higher than they otherwise would have been. But remember that when Hurricane Rita came onshore to the east of Houston and Galveston later in the year oil did not hit $70.85 again. A second massive hurricane narrowly missed the heart of the Texan oil business, blowing rigs around like confetti in an April churchyard, yet $70.85 could not be reached.

Now, some nine months later oil is sitting quite happily at around $72. This should tell us something.
Resource Investor