With oil hitting a record $70 a barrel recently some wonder if it'll ever end. Steve Forbes predicts it will and that it could be more spectacular than the dot com crash.
Forbes
"I'll make a bold prediction... in 12 months, you're going to see oil down to 35-40 usd a barrel," he said, according to Agence France-Presse.
"It's a huge bubble, I don't know what's going to pop it but eventually it will pop -- you cannot go against supply and demand, you cannot go against the fundamentals forever."
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"The speculators know now that no matter what happens to the price of oil, Uncle Sam is there buying almost every day," he said.
"Stop the buying and in fact throw some of that oil on the open market, boy that would throw it in turmoil and send the price down."
He said factors such as inflation and increased demand for oil from China and India only accounted for a small part of the price hike from 25-30 usd a barrel three years ago.
"The rest of it is sheer bubble speculation," Forbes said.
"I'll be blunt, there's hardly a hedge fund in North America that hasn't speculated on oil futures."
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"I don't think it's going to go to 100 usd but if it does the crash is going to be even more spectacular," he said. "It will make the hi-tech bubble look like a picnic -- this thing is not going to last."
Tipped by: The Galvin Opinion
