Moolah Blog!

Just a few days ago, OPEC President Chakib Khelil told a French television station the awful truth that U.S. consumers don’t want to hear. "I foresee prices probably between $150 and $170 this summer," Khelil said.


At the same time, Libya announced it may cut production because the market is "oversupplied." Oil Minister Shokri Ghanem said: "We don’t see any need for more oil. There is plenty of oil in the market."

Libya pumps about 1.71 million barrels per day (bpd) of oil, out of total OPEC output of 32.12 million bpd. That means Libya could easily take away the 300,000 barrels in new production that the Saudis promised just a week ago.

The Libyans, along with the rest of OPEC, want prices where they are now … or higher. Why? Because they want more money! The Energy Information Administration estimates that higher oil prices will hand OPEC $850 billion in net oil export revenue in 2008, a 26% increase from 2007.

So what does this mean for us as US consumers? Expect higher prices of gas! 200 bucks a barrel and 250 bucks a barrel by end of 2009 is not out of the picture! Expect prices to continue to rise! Plan accordingly and do your part in stabilizing your finances to accommodate such a big change!

Guys this is no joke, start planning accordingly please! This means things aren’t gonna get prettier!
I Predicted gas prices would hit 120 a barrel and they have completely gone over that price! I’m telling you that commodities will rise too and food and beverages, as well as transportation prices will continue to rise. Plan Plan Plan accordingly! Count yourself pre-warned AGAIN!

Respectfully,

Tony Tovar