Reuters is reporting that Venezuelan president Huge Chavez is predicting that if his country has further economic sanctions leveled against it, oil could rocket to $300 per barrel, which would send gas prices as high as $8.00 per gallon, or approximately twice the current market price.
Less talked about is Chavez’s admission that the current prices are the result of a speculative bubble which, if it bursts, could send oil prices crashing back down to as low as $70 per barrel and about $1.85 per gallon at the pump.
Sounds like Hugo’s playing it both ways so he can claim to be correct no matter what happens; but remember, WonderfulPessimist.com isn’t about to be outdone by a South American dictator. You read it here first two months ago: $500 per barrel, $22.50/gallon.
Our rationale? Well, hell, it’s as good and as based in fact as anyone else’s wild-ass guess, whether they live in the Middle East, Venezuela or Minnesota!