[Zeddicus]

Only one thing (in my personal opinion) nobody predicted: at US$4.00/US gallon, gasoline starts to become a price elastic (e.g., demand driven by price) product. Already, the demand for gasoline has begun to drop, and if the price starts to approach the peak we had in 2008, the demand could drop dramatically and that could result in the oil companies "holding the bag" on too much expensive unleaded gasoline... this combined with falling demand could result in a pretty steep price plunge very soon.

I agree. I predict that after gas touches $5 or $6 /gal, we will see a substantial price plunge... just in time to clinch Obama's reelection.

[RayChuang88]

In fact, already there are stories that demand has begun to fall quite a bit because of the increasing price. The result will be obvious: the oil companies will be stuck with WAY too much unleaded gasoline bought at inflated prices, and they'll have to dump it in a huge way especially with storage capacity reaching their limits. Don't be surprised that the oil companies end up selling all this expensive oil at well under US$3.00/US gallon retail by late summer and taking a financial bath. In short, don't invest in oil companies right now!