We are over the tipping point on oil prices

I haven’t commented on oil prices lately, but I am sure you all know that it is now regularly trading over $100/barrel. Even closing earlier this week over $103. Today it closed at 100.64. While there may have been a $100/barrel psycological barrier before, it is totally shattered and we are off to the races. Well on our way to my prediction of $140 oil for christmas.

This has had the unfortunate side effect of driving up commodities across the board. Soy Oil closed today at $.69.81/lb. Down from over 70 cents per pound. lets see $.70/pound and 7.8 pounds per gallon means the feedstock cost of biodiesel is $5.46/gallon. Hummmm… Huston we have a problem…