If you think 2007 oil bubble highs of $147 per barrel based on “global demand” was bad, just imagine what’s going to happen to oil prices if the stalwart of Middle Eastern oil production stability — Saudi Arabia — falls into civil unrest (e.g. Egypt), or worse, outright civil war (e.g. Libya).
As we speak, Saudis are using Facebook to organize a revolution on March 20th, and appears they are preemptively hitting the streets to let the leadership know they mean business. Not surprisingly, I’ve seen zero video coverage of Saudis peacefully protesting from mainstream media.
I’m not trying to spook anyone or saying oil will be in the $150 range by summer (when U.S. demand is at it’s peak), or the Saudi Arabia monarchy is about to be Mubarak’ed, but I am saying if you’re the budget conscious type or you run a business where fuel is a cost of doing business, you might want to take global events like these into account when looking forward into 2011.