Why $70 Oil in 2006?

I"m making my projections of $70 oil based on geopolitical problems around the world. Not only that but part of the estimate is derived from my estimates on Demand coming from China, India and the United States as well as the fact that I believe we are knocking on the door of Peak Oil: we have supply problems.

I'm not one of the SHEEPLE who are not willing to put a risk premium on oil. I AM WILLING TO PUT A RISK PREMIUM ON OIL and my modeling indicates 2006 average realized oil price of $70 for ARD. Today is a perfect case in point regarding the GEOPOLITICAL problems that I"m talking about. If you read "Twilight in the Desert" you already would have heard about Abqaiq: the world's largest oil processing facility.

Some say $55 oil.
I say $70...MINIMUM.
We are at $62...

If the bombers today had hit their target at Abqaiq we would have seen oil go north of $70 today (or at least in the coming days.) I say $70 is conservative. (I think it is a lowball estimate...Especially when you factor in the summer driving season and hurricane season.) Don't be a sheeple. $55 oil ain't gonna happen.

'Nough said.

I encourage everyone to go to my site and purchase your copy of "Twilight in the Desert" from Amazon.com. (If you enjoy my website and feel it has helped you please click on the link from my site so I get a small commission...that is why the ads are on my site. My time is worth something. I'm hoping that the ads will give me a little something in return.