Oil Is Headed Higher

Aggressive inflation will send oil a lot higher than $200 (USD) by the end of this cycle. Of course, gold will be significantly higher by 2016. This suggests that $200-$300 (USD) oil won't carry the same real cost as it would in 2011.

Let it not be said that the lunatic fringe cannot see the forest through the trees.

West Texas Intermediate Crude Oil (OIL) AND Oil to Gold Ratio (OILGLDR):


Headline: $200 Oil Is a "Totally Exaggerated" Forecast, Says Energy Analyst Gheit

Oppenheimer oil and energy analyst Fidal Gheit unequivocally believes that the uprisings, which have also been seen in Egypt, Tunisia and Bahrain, will spread until authoritarian dictatorships are ousted throughout the Middle East. (See: Saudia Arabia's Regime Wll Fall, Says Analyst)

If that does eventually happen, he expects oil to hit $120 to $130 a barrel -- but not $200 or $300, as some have speculated. Those calls, he says, are "totally exaggerated and totally irresponsible."

Source: finance.yahoo.com