https://www.msn.com/en-us/money/mar...mp;cvid=fbf88dee205d4c85a8ea632fbbb0ac48

Any truth to this?

At $15.00 a Gallon, that will be $300.00 a week just to fill up the tank on the Truck !

you will own nothing and be happy

$75.00 a Week to Mow the LAWN !!

Raccoon prices will be through the ROOF !! LOL

Ha Ha,..you remember those threads,..we're all rich!

Looks more like an ad for JP Morgan.

Yes, that is basically a add for J.P. Morgan. Bunch of crooks

Be curious to hear what white or any of the other financial gurus have to say.

$300 a barrel crude would bring the US to it's knees, I'd think.

Or $200 for a loaf of bread.

Yup. I'm also waiting for jbyrd to post lol.

In the present times I can't see oil going that high, demand would be destroyed long before it got there. Now if they inflate the money supply another 40 or 59 percent like in the so called response to covid, I'd have to recalculate.

I think I could make a reasonable argument for 200 dollar oil in present terms

200 would be brutal, do you foresee oil climbing? My brother and I were just talking about this, he thinks it's going way up this fall, I have no idea.

Demand destruction won’t let prices stay that high. There is already demand destruction. I have had two employees quit to take jobs way way closer to home.

There has to be a turning around point someplace. The Interest right now is Dec of '22 and the next would be June of '23. Ideally the hedgers would like to leave someone else holding the bag so that when it blows off it will be liquid enough for them to get turned around. So there will be hype to get the public money in for the turn around. Get the hype in, then have a hurricane or pipeline shutdown or another trigger and its up and away and here comes the speculator which have a poor winning record but provide plenty of volume for the turn around.

As I've said before. Stay out of the swamps, because there is quicksand in there !

Is $380/bbl possible ? Sure it is but I would guess that the probability of such an event is way down in single digits.

We are already seeing demand destruction in oil markets and slowdowns in the housing industry. Layoffs of workers are beginning to happen.

If oil went that high I believe it would put an end to almost all economic activity world-wide.

If oil starts moving faster, so will the Fed. If the Fed has to choose between $380 oil and recession, it will choose recession in a heartbeat.

I believe we are already in a recession. First quarter real GDP was -1.6% and second quarter was -2.1%. That meets the classic definition of a recession....2 consecutive quarters of negative growth.

OPEC has very little ability to increase oil production but Venezuela, Iran, and the US still have spare capacity.

I also believe that speculators will exit the market way before we reach that price level. The risk far outweighs the potential reward. It would be far too likely for government to step in and essentially nationalize the oil industry for "national security" reasons. No investor or speculator wants to be holding the bag at that point.

I am confused about how some see this as an ad for JP Morgan ????

I guess maybe when people associate the 4 horsemen of oil and Federal Reserve people just naturally come to conclusion of guilt by association or at least as not trust worthy. Just a guess.

Maybe the Titanic was sunk by the shooter over on the grassy knoll to start the Fed Reserve, lol.

Thank you White17. Very good explanation. IMO. We are all ready in a recession. Where we go from here is anyone’s guess. Price of oil etc... Things can change in a minute. Stay tuned.

I don't expect oil to climb other than typical market fluctuations.

In 2020 when oil went negative and presidents were signing stimulus plans I felt oil was going to $100 easy and unlike the oracle of Kentucky I put my money where mouth is so to speak. Part of the reason I felt oil was going to climb was that I was expecting the USD to lose value, although it did in the beginning and has come back strong for whatever reason(I know why). It's hard to say where oil would be if the dollar had went south and was trading under 90 on the dxy.

I am of the belief the FED will raise rates one more time and then pivot. If the FED pivots before it kills inflation, that is where I see the potential for 200-dollar oil.

I agree Ken, we are in the beginning phase of a full blown recession, my son asked me in April if I thought there would be one, my answer was too late, we are in it.

Did someone say oil?

Yep, I am still alive. I toughed thru the heart problems and escaped from the hospital. They planned no additional tests or procedures so not much point being there.
The cardiologist scheduled an appointment for August - no real time issue here. So I am looking for a new cardiologist.
Thanks for your prayers!

Back to oil.
Nobody wants to see $380 oil.
Nobody wanted to see oil top $200 during the Obammy administration. But it did.

About a year ago, some investors were buying in on oil contracts at $200 for 12/22. They may cash in?

Before $380, everything else will be on the rocks. There will be economic and societal breakdown.

There is still plenty of capacity in the oil shale region of Ohio. About 3 miles from my home a rig is drilling. The new site pad will support 8 wells. A second pad can be added for another 8 wells.

I also believe that speculators will exit the market way before we reach that price level. The risk far outweighs the potential reward. It would be far too likely for government to step in and essentially nationalize the oil industry for "national security" reasons. No investor or speculator wants to be holding the bag at that point.

As White says above at some point, the Feds would nationalize the petroleum industry. Wouldn’t that be a hoot! The devil would be in the oil patch for sure then!

The U.S. Oil & Gas Association took a hit at President Biden after he tweeted on Saturday that "companies running gas stations" should simply "bring down the price you are charging at the pump," telling him that he should "please make sure the WH intern who posted this tweet registers for Econ 101 for the fall semester."