Oil To Hit $300-$400 a Barrel if Iran Attacked: NBC News

Originally posted by johnsky
I'm not one for attacking Iran, it's a horrible mistake.

However, the value of oil is going to reach $400 regardless of an attack on Iran or not. The economy is failing, the investors are turning to oil, which through interest drives the value per barrel up, decreasing the ability for the economy to afford it, driving the dollar down, and inviting more investors to invest in oil rather than the economy.

Economy is going down.
Dollar is going down.
Value of oil is going up.

Theres no way I can foresee it NOT hitting $400 a barrel soon. (Unless the US enacts a socialist control system to clamp down on the value of oil.)

This has NOTHING to do with supply and demand, and EVERYTHING to do with speculation of investors. There are plenty of reserves, plenty of refineries and oil wells.
It's all about the investors speculating on the price by wanting in on it.


Let me make it simple.
Person A has an investment in 10,000 barrels of sweet crude. They hold it at $100.
Person B wants 5,000 barrels in investment. Is willing to pay $110.
Value of sweet crude is now at $110.

That's of course a very simplistic way of explaining it. But I can tell you this... all supply has to do with it is to give excuses to the investors to mark the value up before they trade.

True, it is based on speculation for some people. But not entirely...

We do however know that oil companies are very greedy and are not finished raising their oil prices yet. There are some people that know precisly of what is yet to come. There would be no speculation if supply and demand were all simply controlled.