Oil guru says crude could hit $190 this winter

[arcos]

Oil guru says crude could hit $190 this winter

OTTAWA - Consumers should brace for crude oil and natural gas prices possibly doubling or tripling this winter, Matthew Simmons, a best-selling author and oil-supply bear, said on Wednesday.

"Prices are really cheap today and they need to go a lot higher, and they probably will go a lot higher," Simmons said in Ottawa.

<snip>

"Either one of those events (oil product shortage or natural gas shortage) could send prices two to three times higher than they are today," he said after a speech in Ottawa.

That could translate into natural gas prices of $40 per million British thermal units from more than $13 now, he said. Doubling or tripling crude would put it in the range of $125 to $190 per barrel.

<snip>

http://www.msnbc.msn.com/id/9753233 /

[kestrel91316]

1. Well, I bet THAT will get the SUVs off the road, huh?

[Roland99]

2. Uhh...sounds just a bit far-fetched, eh?

[rpannier]

3. I love the...

"Prices are really cheap today and they need to go a lot higher..." coming from the guy who can afford for them to go higher.

[benburch]

4. My commodities broker friend thinks $100/bbl

And he is usually right. This guy seems way too high.

[Lone_Star_Dem]

9. That's more believable n/t

[IDemo]

5. Simmons was Bush 41's senior energy advisor, but bears listening to

http://www.peakoil.net/MatSim.html

[TechBear_Seattle]

6. Dateline Ottawa, so $190 Canadian?

That would be $161.48 US a barrel as of today's closing exchange rate. Ack!

Does anyone else remember the GOP screaming during the Clinton administration that $40 a barrel was too high and that the President should be held accountable for such outrageous prices?

[tritsofme]

14. All crude oil is traded in US Dollars.

nt

[FormerRepublican]

7. Well...

...since nobody has money to buy at that price, the price would have to come down due to lack of demand. $190 per barrel is unsustainable because the economy couldn't support it, despite the delusions of those who hope it does hit $190 per barrel.

Gas that expensive will force people to switch to bikes and other means of transportation (including walking).

[Up2Late]

8. So you write a book on investing in the rising price of oil and suddenly

you're a GURU?!? Give me a break!

Ridiculous.

[mhr]

18. Simmons Is The Founder Of Simmons & Co.

Which is an investment bank to the energy industry.

If you want to build a new drilling rig, you go to Simmons.

If you want to build a new refinery, you go to Simmons.

If you want to build a new LNG tanker, you go to Simmons.

The man knows whereof he speaks.

www.simmonsco-intl.com

[lovuian]

10. My son went to buy a Honda Civic which gets 30 city/40 highway

the dealer said they only had one on the lot and then somebody bought it!!!

He would have to order it!!! People are getting the message loud and clear!!!

Its going to change the way our lifestyle is about!!!

[benburch]

11. Why not a Toyota Hybrid?

That gets 50 mpg on average???

[lovuian]

13. didn't have enough money!!! the civic is all he could afford!!!

but they are selling like crazy cause people can't afford these gas prices!!!

[CountAllVotes]

16. well hell

I have a 2002 Accord and I get 27 mpg city, 35 highway. What's the big difference here really? I can see the better mileage aspect if you drive a lot but I only drive less than 3,000 miles a year. It is not worth it for me to buy another car and the Honda Civic isn't near the automobile the Accord is which is made 80% in Canada and 20% in Japan. It is a fine automobile and the Civics I've owned in the past (3 of them in fact) don't hold a candle to the Accord I have. They got better mileage, yes they did but they weren't near as good quality wise.

I've had to spend zero $ on this Accord since I've had it except to have the oil changed. Hmmm ...

[still_one]

12. Boone pickens has been right on

what is the record of this guy?

[tritsofme]

15. Or it could sink back to $40-$50/bbl

That'd be my guess.

[CountAllVotes]

17. you may not be far off there

They want people to buy new cars and spend money they really don't have to sell this new fuel thing with cars.

pssttt don't mention the fact that 75,000 Toyota Prius' were recalled yesterday ...

[Barkley]

19. "Prices... need to go a lot higher" !?!?!?! Why?