Four Reasons

Why Oil Will Hit $187/Barrel

utmx_section(”SubHeader1″)Consumers Will Feel Pain at the Pump But Investors’ Portfolio can be Turbocharged

By William Patalon III
Executive Editor
Money Morning/The Money Map Report

In the next 36 months, oil prices will hit $187 a barrel and gasoline prices could reach as high as $6 a gallon, Money Morning Investment Director Keith Fitz-Gerald predicts.

How? Consider the four following concurrent events:

• The Dollar Doldrums: Oil is priced in dollars. And the dollar is in the dumper. OPEC members will counter the greenback decline by marking up the price of crude, causing prices to increase still more in dollar-denominated terms.
• Soaring Global Oil Demand: Newsflash: there hundreds of millions of new motorists in Asia. China’s oil imports jumped 18% in one month. And India’s Tata Motors Ltd has unveiled a $2,500 Nano. The fallout: oil will first get more expensive as supplies start to drying up.
• Obfuscation by OPEC: Key players of the Organization of the Petroleum Exporting Countries have "reported" no new discoveries for decades.
• Terrorism Threats: Threats are escalating beyond comfort levels, already driving up prices and creating a double-whammy effect. Damage to pipelines and refineries could crimp supplies just as global demand escalates.

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