If you think oil and gasoline prices are high now, they may seem cheap before long, according to CIBC World Markets Chief Economist Jeff Rubin.
Rubin, who predicted three years ago that oil would reach $100 a barrel, thinks it will climb to $225 a barrel in four years. Gasoline could be around $10 a gallon by that time, he says.
It's all about tight supplies and rising demand. Rubin points out that almost all the growth in global petroleum liquids production since 2005 has been in natural gas liquids. Those, he says, are not a useful substitute for oil and can't be economically turned into gasoline, diesel or jet fuel.
"Stripping out natural gas liquids, oil production has not grown for over two years, which certainly goes a long way to explaining why oil prices have doubled over that period," Rubin said. "It is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity."
I doubt it could ever happen. The country would be in a depression long before that and the big oil boys and opec would be cutting their own throat because the alternative energy people would finally win this battle both with the govt and with the people. Never happen...but yes they will push the envelope as far as they can! Maybe 160 a barrell, tops. Which will still really hurt many single and divorced working moms and even most middle class! Time to go short the market! Im short QQQQ and the banks now.