Every time oil breaks the $100 a barrel mark there are teams of analysts willing to make calls like $200 oil, recently one even said (without cracking a grin) $250 oil.
If we debase currencies enough then there is no upper limit on oil prices (think Zimbabwe Dollars for a moment), but how likely is that with the USD? If you think ‘very likely’ then stop reading, if you think dollar hegemony is there to stay at least a little while longer then continue – bearing in mind that every time there is a crisis people run into USD and the world won’t run out of crises any time soon.
This is furthered on the options market where somebody was willing to buy the right but not the obligation to purchase oil at $250 in December. To use their own parlance, I have four words for them ‘out of the …