Adding A Little Gaz To The Speculatory Fires

By Gunnar Heinrich

ECONOMISTS had been positing in recent weeks that the oil futures market is looking downright bubblish.

But to counteract such optimistic notes which might just send the price of oil (and the price at the pump) down a few percentiles, Russian state oil cartel Gazprom decided to throw a little gaz on the speculatory fires raging in the world’s crude markets.

“Today we are witnessing a very great change for hydrocarbons. The level is very high and we think it [the price of oil] will reach $250 a barrel,” The Financial Times quoted a Gazprom rep. as saying at a news conference.

That’s up from Goldman Sachs’ lofty $200 per barrel estimate stated earlier last month.

As if on cue, crude has jumped $16.24 in the last two and a half days. More proof that if someone, anyone, anywhere suggests that the price crude will be X, traders in New York and London will work like suicidal automatons to meet the target.

And bring the world’s drivers great pain in the process.

[Linked: FT]