Oil Spikes- Again!

Who would have believed $75 a barrel oil, much less $100? How about $125 or $150 a barrel? Just how high can oil go before it crashes the economy- WORLD WIDE? I think we're about to see. There will come a tipping point and when we reach it you can't simply drop the price and go back. Too much damage will have been done.

Oil prices spiked to a record $117.40 a barrel after a Japanese oil tanker was hit by a rocket near Yemen and militants in Nigeria claimed two attacks on pipelines. The 150,000-ton tanker Takayama was attacked about 270 miles off the east coast Yemen coast in the Gulf of Aden while it was heading for Saudi Arabia, its Japanese operator, Nippon Yusen K.K., said in a statement.

Isn't it interesting that we continually find "reasons" that oil must go up!

There's never a reason it should go down! Everything goes up in today's world! Oh yeah, there is the housing thing and the falling US Dollar! :-(

Adding to the worries were claims Monday from the main militant group in Nigeria's restive south that it had launched two more attacks on oil pipelines in the region. There was no immediate confirmation.

Last Friday, oil prices rose to touch $117 for the first time after an attack on a Royal Dutch Shell PLC pipeline by the Movement for the Emancipation of the Niger Delta. Shell confirmed a pipeline leak that it said appeared to have been caused by explosives. It said it had isolated the line for repairs and that a small quantity of production had been shut.

An OPEC official that the group isn't likely to increase production also supported prices on Monday. So let inflation continue to rise til it totally chokes the world wide economy.

Attacks since early 2006 on Nigerian oil infrastructure by the militant group have cut nearly one-quarter of the country's normal petroleum output. Nigeria is a major supplier of oil to the U.S. Pervan said incidents such as the pipeline and tanker attacks were "one-off" issues that didn't really change the market. "They're not fundamental, they're not going to be sustainable," he said.

But the prices still rise now don't they! Until the goose that lays the golden eggs is killed- which might now be too far away. And then we might see oil at $50-$75 a barrel again.