7 Reasons Crude Is Going to $80/Barrel

As I mentioned last week in my article recommending airline stocks, oil is presently overvalued. Putting aside my long-term bias toward believing in peak oil, I must admit that in the short-run, nearly all signs point to crude going down. A fairly rapid fall to $80/barrel or further is quite likely. Here are seven reasons why. 1. Crude inventories are up Generally, to get a economic shock, you need a shortage. As the below graph of U.S. oil inventory shows, we would have to face profound sustained cuts in supply to dip toward shortage. In 2008, when $147/barrel oil occurred, inventory was quite low and well below the normal range. Today is the opposite with stockpiles up and at the high end...

Source:
http://article.wn.com/view/2011/02/28/7_Reasons_Crude_Is_Going_to_80_Barrel/

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