Oil $133 - forecasts to $150!

Wow. This is bad, bad news and today I went looking for some sort of car that gets good gas mileage and its beyond the pale disgusting how little choices there really are. Does anyone else think it strange that there were better gas mileage cars around in the 1970's than there are today?

Oil Rises Above $133 on U.S. Supply Drop, Bank Price Forecasts :

Crude oil rose to a record above $133 a barrel as U.S. stockpiles unexpectedly dropped and banks raised price forecasts because of supply constraints and demand growth.

Inventories fell 5.32 million barrels to 320.4 million last week, the biggest drop in four months, the Energy Department said. Oil for December 2016 delivery rose more than $20 a barrel, or 17 percent, after Goldman Sachs Group Inc. on May 16 raised its outlook to $141 a barrel for the second-half of the year.

``What we have here is a situation where essentially higher prices aren't generating any more supply,'' Paul Sankey, an analyst at Deutsche Bank Securities in New York said in an interview with Bloomberg radio. ``What we have to do is keep pricing the commodity higher until demand starts falling,'' which ``is around $150 a barrel.

ok, everyone reading that, $150 a barrel.

I think that is going to cripple the US economy but I'm sure others have something to analyze to see if that's true.

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