Will gas (oil) hit 200 dollars a barrel?

Question

And if so what will happen?

Answer 1

Goldman Sachs predicted crude could hit $200/barrel, but they've been saying that for a while.  There are just as many respected analysts saying that the only reasons oil is rising is the weak dollar and global tensions, that once normal market forces are at play, we could return to prices in the $40-60 range.

If oil hits $200, demand will significantly decrease, not just here, but globally.  Increases in supply will soften price pressures and oil will reach an equilibrium price, currently estimated at $80/barrel.  The global economy cannot withstand $200 oil, industries will slow down due to increased raw material/distribution expenses and oil will be forced to a normalized price point.

Answer 2

You know some smart people have actually predicted that by 2010 oil will be $200 a barrel with the current trend. I read somewhere that OPEC said it wouldn't be surprised with that number either. At $200 a barrel oil would be around $8-10 a gallon.

http://www.baltimoresun2.com/talk/showth...

Answer 3

yes we will be paying at least 5 or 6 dollors a gallon by the end of 09. and what will we do about it nothing!