Oil Hits $115

Today oil hit $115 per barrel on news of a large draw in U.S. stocks.

As long as demand for oil remains strong, we can expect oil prices to go up.

This oberserver believes that oil prices will continue to rise as oil makes up a smaller portion of production than it did in the 1970s and as 3 billion people who have never before used oil are starting to use it around the world.

Population pressure alone, suggests that oil consumption will increase regardless of cost. The population of the world has doubled since 1965, leaving us with over 6 billion people today.

Also recent news on the Internet suggests that charts based on oil production statistics for Russia are correct and that oil production in Russia has definitely peaked. This should also drive up cost.

For a very effective and simple analysis of the possible ramifications in increased prices, you should look at this very good video.