There’s possibility that the oil price will dip below $100 per barrel over the next few weeks. Today (Sept. 9th), the oil price is $106.53.
The change is looks good that we're seeing the bottom right now. However, it wouldn't know how long it could stay.
While Oil has fallen over 28% from a July record of $147 a barrel, don't forget that prices are more than 44% higher than a year ago. Back then we were paying a mere $73.98 a barrel.
So why exactly are we expecting oil to stay above the $100/bbl mark?
But, the Hurricane Ike is making cutting its way through Cuba. If the storm remains on its current path toward the Gulf of Mexico, we can expect Ike to re-gain strength as it moves back over water.
Even if Ike turns out as lackluster as Gustav, the threat of a hurricane battering the Gulf of Mexico ensures that production will remain shut-in. Let's take a closer look at the impact of these two storms... then get into how oil-rich countries are even more aggressively protecting their oil wealth...
