OPEC Say Oil Will Not Reach $110 Per Barrel

Recent reports from numerous news sources suggest that at some point early this year Americans could be paying as much as $4.00 for a gallon of petrol. But is this a true prediction or just a bit of fear mongering during high demand in the winter months.

If you are to believe some of the news filtering out online and on the TV with reports such as those from CNBC 'Oil Price Could Reach $110 in Next Few Weeks: Official', in which it is suggested that oil could hit $110.00 per barrel. Then those of us who have a need to travel by car or the like are in for a massive shock.

If the petrol pumps at gas stations across the United States did hit $4.00 per barrel it would spark a massive public outcry. In fact way before the prices hit anywhere near $3.50 the USA would see huge protests regarding gas price hike.

Not only would travel to work in the morning be affected but the ramifications across the board would be huge. With already hiked up household fuel bills and food prices on the increase, gas prices hitting $4.00 per barrel would probably be the tipping point for many people and business.

It is largely viewed that the powers that be will avoid the price of a barrel of oil exceeding even $95.00 a barrel but even this would see gas prices at around $3.50 mark.

OPEC has commented stating that it does not feel that the global economy would be affected with oil prices reaching $100 per barrel. Saying that it thinks the world can afford it.

OPEC meetings are scheduled to take place later in the year, but it is hoped that if demand for oil increases then production would be increased to stop the prices getting anywhere near $100.00 per barrel.

There is a lot of speculation among the general public that if such price hikes were to happen then they simply would not be able afford to live or even go to work by car. And with many people in the USA simply not able to use public transport because it is not available to them.

If oil did hit $110.00 per barrel the increases in other oil reliant products could simply be too much for many people, and could push many families over the edge. One man asking, "how can OPEC say that the world can afford $100.00 per barrel when I know I can't afford to warm my house this winter. That is total garbage!"

A feeling that is reflected with many people around the world.

Source: CNBC