It’s over midnight and I’m back from Amsterdam, Turning on the computer I found that something dramatic had happen with the oil price during the hours I was flying from Amsterdam to Stockholm. Suddenly during a period when the price was on a down slope it jumped up to a level over $130 a barrel, and the trend is just now a slow increase.
I went to the Oil&Gas Journal homepage to see if they had an explanation and this is the O&GJ statement: “Energy prices hit new highs May 20 and continued climbing after former oilman T. Boone Pickens predicted crude futures will reach $150/bbl this year because there is not enough supply to meet demand. “
I called my friend Robert Hirsch to find out if he had spotted something that could have started the rally. He told me that he was on the same TV program as T. Boone Pickens and that he was surprised to see the rally. (Hirsch on CNBC)
It’s a very strange feeling to see what is happening just now. Even if I have for years said that we are approaching Peak Oil and that we have the data that can explain why increase in the oil production is limited, and that economist had said that if you are right we will see prices of oil that we never seen before, it’s unbelievable to see the numbers in reality.