The random political thoughts thread (Part Deux)

[Ghoulish Delight]

Originally Posted by scaeagles

You are predicting oil at $350/barrel (based on your $7/gallon)? Not going to happen.

That's some funny math there. It's $3/gallon now with oil at $71/barrel. It's been relatively linear (~$2 when it was at $50/barrel, ~$2.50 when it was at $60/barrel), so $7/gallon would be around $165/barrel. And it wouldn't be surprising if, once it passed $100, that linear relationship accelerates, hitting $7/gallon even sooner.

Meanwhile, I heard one economist with an eye on oil estimate that if supplies were what the "should be" (i.e., Iraq and Nigeria in particular producing at full capacity), the price "should be" $55/barrel.