Could oil prices skyrocket to $200 a barrel … or more?

as informed in But for those of us who watch the oil market, there's a nagging feeling that we won't get to read that trashy novel on the beach, because oil prices are ready to explode. Unsurprisingly, oil prices initially were up Monday but, at the time of this writing, had fallen below last Friday's close. Veteran oil market-watcher Philip K. Verleger released a report from his firm, PKVerleger LLC, anticipating oil prices at $200, with the possibility of a surge to $400 per barrel, in the next 12 to 18 months. Currently, the world economy is growing nicely; hence, the oil price increases of recent months. So, plenty of possible threats exist to any practical calm in the oil markets - which, additionally, are worldwide, rather than regional.

Gas prices begin to dip as oil production increases

Gasoline prices in Alabama have fallen 1.7 cents per gallon in the past week, a trend that may continue for a while longer. The erratic nature of gas prices started years ago, causing commuters and local governments constant headaches. — The lower prices in Cullman by Tuesday ranged from $2.39 per gallon to $2.45, according to GasBuddy's survey. "With Libya resuming oil exports, oil prices have been under pressure the last two weeks, falling briefly under $68 per barrel last week, closing out the week far lower than two weeks ago when oil prices touched $75. "Retail gas prices still have some downward movement coming to catch up to the recent drop in oil," he added.

Could oil prices spike above $150?

as declared in That's causing reserves at major producers to fall and the industry's reinvestment ratio to plunge to the lowest in a generation, paving the way for oil prices to surpass records reached last decade, according to Bernstein. RELATED: Oil prices slip, but it's likely just temporary"Investors who had egged on management teams to reign in capex and return cash will lament the underinvestment in the industry," the analysts wrote. The oversupply of crude globally in recent years has masked "chronic underinvestment," Bernstein said in the report. The producers aim now to pump more to help cool the market, but disruptions from Libya to Venezuela are keeping prices elevated. Proven reserves of the world's top oil companies have fallen by more than 30 percent on average since 2000, with only Exxon and BP showing an improvement, helped by acquisitions, Bernstein said.

collected by :Frank Ithan