$100-A-Barrel Oil Looms in United Statesâ€™ Future
BALTIMORE, MD – Speculation over Iranâ€™s nuclear goals, along with the possibility of outflow disruption from OPECâ€™s fourth largest oil producer, has pushed the price of crude to record highs. Crude oil futures for June reached a record high of $75 a barrel on Friday, and one commodities expert believes that this price will be considered low, once consumers realize what the future has in store for crude.
â€œSeveral major disruptions are driving us toward the $100-a-barrel level and $5 – or more – for gasoline,â€ said Kevin Kerr, commodities expert and frequent contributor to The Daily Reckoning. â€œThese skyrocketing prices could be caused by Iran, OPEC, refinery shutdowns, hurricanes, Venezuela, or possibly all of these factors combined. The longer consumers deny the fact that $28-a-barrel oil will not be seen again, the harder it will be when they fill up their gas tank.â€
Although the United States is not in the peak summer driving, or hurricane season yet, drivers will be feeling the pinch at the pump. One of the major factors influencing the rise in prices is the concern over supply disruptions. Recent rebel attacks in Nigeria, which is Africaâ€™s biggest oil producer, have shut down about 20 percent of output.
â€œAfrica will remain a big focus for the oil market. These consistent attacks on Nigerian pipelines that are operated by foreign companies worry traders a great deal,â€ says Kerr.Â â€œThe Nigerian rebels are warning companies to get out now while itâ€™s still safe. Can they be more direct than that? Does $100 oil really sound that far fetched now?â€
Kevin Kerr’s expertise in futures and commodities has made him a regular contributor to news outlets like CNN fn, CNBC and MarketWatch, where he’s been quoted in over 500 articles. With 15 years of experience, and his own trading service, Resource Trader Alert, Kevin Kerr is a true veteran of the commodities markets dealing with everything from cotton and currencies, to oil and natural gas.
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