How high will oil go in 2011?

Posted by Ian Cooper - Tuesday, December 28th, 2010

From CNNMoney.com:

"Dollar and record demand from China. Prices pushed above $90 per barrel on December 7 and reached $91.51 on December 22 – a marked jump from their levels near $70 a barrel in September.

The development is significant. Some economists believe that if prices rise much more, especially past $100, it will likely dampen America's already slow economic recovery. As the price of crude rises, so does the price of gasoline, and a higher price at the pump will hurt consumer spending overall.

So where will oil go in 2011? Will it surpass the psychologically significant $100 mark at a time when demand for oil from most emerging economies is expected to rise? Or will it retreat as China tries to rein in growth amid worries over inflation? 

Here's a look at the bull and bear arguments for the black gold next year."

Read more here.


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