In the blog entry that I wrote on 11/19/2006 about crude oil hitting a 1 year low at $55 I reckoned that crude oil should be range bound to $45 - $65 a barrel. I know this is wide. But recently it picked up again and was eyeing the $65 mark before being pushed down again at now rests at around $61. OPEC (the middle east oil exporting block which is the largest in the world) has said it can scale back production by 1.2m barrels a day. They like keeping prices on the higher side. Another big reason being sighted is warmer than expected weather in the northern US.
Will crude oil make a break towards the $50 level? OPEC will resist it. But, if global warming is for real.....who knows? Just stay cool. Anyway, a better range would be $70 - $50. I think it will come close to both levels in the next 12 months. The average price of gas at the pump in the US is $2.285 today slightly up from a month ago as per www.gasbuddy.com. That prediction didn't go as well. But we still have 2 weeks before the end of the year. Plenty of time to drop.
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