Analyst: $200 oil could happen this year

Murti: ‘Lack of adequate supply growth is becoming apparent’

NEW YORK - A Goldman Sachs analyst on Tuesday predicted that oil prices could reach $150 to $200 a barrel over the next 6 months to two years, but said that how far prices could climb still “remains a major uncertainty.”

“We believe the current energy crisis may be coming to a head, as the lack of adequate supply growth is becoming apparent,” analyst Arjun N. Murti wrote in a client note.

Oil for June delivery hit a record $120.93 a barrel Tuesday in electronic trading on the New York Mercantile Exchange.

http://www.msnbc.msn.com/id/24482312/

Enough of the speculation, or enough in the price?

Both!

Or, enough of the media attention?

I wonder where the break even point is for my truck getting 12 MPG (but paid for) versus buying one of the ugly little electric egg shaped things

I figured mine out, and at $3.79 per gallon, I break even buying a 36 mpg Nissan Versa and getting rid of my 16 mpg Minivan.

Enough of the speculation and the price increases.

Forgive my ignorance on the matter, but do these oil companies do price setting similar to a oligopoly?


And, regardless of whether the media covers it or not, it's painful at the pump.

For those of you who have doen the 'replacement' math on break-even price, I have a question. How would one figure the 'break-even' price on buying an additional non-gas-hog vehicle for everyday running about when one MUST keep the gas-hog truck (11mpg) for towing?

Take the number of miles you expect to drive the "gas-sipper" and divide by the mpg to get the total number of gallons used. Multiply that by the price of gas and you get the total cost of gas. Then do the same for the gas-hog and see how much less you will spend on gas with the more efficient vehicle.

Example: Replacement car gets 30 mpg (for ease of math) and you expect to drive it 12,000 miles per year for 5 years. This is 400 gallons of fuel per year. At $3.90/gallon (here in CA ) that is $1,560 per year in gas, or $7,800 in 5 years. Gas guzzler gets 11 mpg, would use 1091 gallons of fuel, costing $4,255 in gas, or $21,275 in 5 years. You would therefore save $2,695 per year in fuel, or $13,475 over 5 years.

Of course, the savings increase or decrease with gas prices and the extra car will add insurance and upkeep costs which would have to be factored into the equation. If you're getting 11 mpg from your everyday vehicle, getting a more efficient second car could very well make sense.

Oh goodness - 12,000 miles per year? I think I average closer to 30,000...