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Can oil go $150 a barrel or settle for $50 a barrel?
Alex Hernandez
Nov. 24, 2007

That is the biggest question mark. Oil is surging ahead because of Indian and Chinese demand. These countries do not care. They know they can dump goods and services on Europe and America. The people in India and China still enjoy $40 barrel oil because of Government subsidy and forward contracts. The foreign direct investments in dollars and euros are paying for the price surge in oil.

The oil from Canadian sand and other alternate senses in US will start pumping oil at $95 a barrel. The creates a sealing for the oil price for the next decade or so at $110 a barrel on the upside. The floor is unknown because of many reasons.

There is more than 80% chance world economies will be hit with deflation driven depression by 2009. In that case oil demand will fall and oil can drop below $20 a barrel.

If there is no world depression most likely oil will trade between $60 and $100 in the next ten years. Is time to short crude futures? You bet it is if you are ready to trade short term.



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