I wonder what OPEC will have to say about this.
Publishing billionaire Steve Forbes has predicted that soaring oil prices will lead to a crash that could make the hi-tech bust of 2000 “look like a picnic”.
Mr Forbes, publisher of Forbes magazine, said the price of oil, which peaked at more than $US70 a barrel on Monday as Hurricane Katrina headed for the US Gulf Coast, was unsustainable.
“It will make the hi-tech bubble look like a picnic — this thing is not going to last.”
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Forbes Contradicts himself:
The next day, 1 Sept, 2005, the subscriber only Forbes Professional Timing Service stated. This is “THE MOST IMPORTANT ADVICE I HAVE GIVEN IN 20 YEARS”
“expect to see crude move to $65.00 this summer and to $76.00 by early next year.”
“..the so-called terror premium in crude prices – which will remain until we see at least three years of peace in the fertile crescent”.
And,
“We are at the point where the rubber hits the road, and the only rationing mechanism for whomever gets the available supply will be higher prices.”
Trying to figure out where he says this is the end of the world. When forbes talks about money, people may want to listen.
Forbes is not predicting a crash in the economy or the stock market, but rather in the price of oil. These are historically high oil prices, at 6.5 barrels per ounce of gold vs a historic trend of 15. One reason for the higher oil prices is that Greenspan keeps weakening the dollar which is now at 1/450 of an ounce of gold, so oil suppliers don’t have the same price guarantees that they would get under a fixed dollar.