From Barrons:Despite the recent 20% decline from April highs, new highs on crude, heating oil, diesel fuel, jet fuel and gasoline seem likely over the next 12 months. Following some further easing over the summer, the second leg of the long-term bull market in petroleum–the first occurred in 2007-08–probably will begin this fall.
There is a bad part of this and a good part of this.
The bad part is that this will cause all other prices to increase due to increased transportation costs, as well as the increase in costs for materials that use petroleum as a raw material. That will have a really horrible effect on a lot of people, making ends even harder to meet. I know that $5/gallon gas will seriously hurt me, not only with the direct expense, but also with the indirect expenses. I’m sure it won’t do you any good either.
The good part: if petroleum is at $150/bbl next summer, I’d say that the current Regime had either better pack their bags or prepare to nullify the 2012 elections. After all, the high gas prices are exactly what the leader of this Regime wanted (though, in fairness, he does admit that he would have preferred a slower adjustment to the high prices)