May 30, 2008

$90 IS UNSUSTAINABLE:

Analysts say oil is the new dotcom bubble (Kathryn Hopkins, 5/30/08, guardian.co.uk)

Oil has reached "unsustainable" levels and is heading for a sharp correction, according to analysts at Lehman Brothers, who liken the spiralling price to the dotcom boom and bust of 2001.

In the report, "Oil dotcom," Lehman's Michael Waldron says the correction could come as early as September: "We think that the crude oil market should turn and we think it will happen by the end of the year."

The report predicts that Brent, which currently stands at $126.40 a barrel, could fall to $90 a barrel by the first quarter of 2009.


An ideal time to start cranking federal gas taxes to make up the difference.

Posted by Orrin Judd at May 30, 2008 11:13 AM
Comments

Of course, the WSJ reports today that Goldman expects oil to hit $140 by July and $200 for next year.

Posted by: jim hamlen at May 30, 2008 1:30 PM
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