A fellow blogger over at oilprice.com speculates that oil prices may be going as high as $100/barrel by the end of the year.

…the fundamental assumptions of the oil industry upside down, and that sharply higher oil prices were in the cards, probably $100/barrel by year end.

Major oil companies with deep pockets at risk were rushing to offload their existing offshore leases and partnerships in producing wells to avoid BP’s potential $30 billion hickey.

While we feel $100/barrel is particularly high, it’s nearly impossible to overstress the importance of potential new federal regulations on gulf oil production. Consumers and fleet managers beware.

Thank goodness BP is making such good progress on stopping the leaking well, because hurricanes are coming!

June and July did not live up to predictions by the National Weather Service’s Climate Prediction Center, but conditions in the Atlantic’s main hurricane -forming region are now ripe.

The CPC says 70% chance of 14-20 named storms, 8-10 hurricanes and 4-6 major hurricanes.

Warm ocean temps & La Nina, yikes! Mid-August is the time when the action revs up.

Colorado State’s forecast calls for 18 named storms (which include Alex and Bonnie), 10 hurricanes, and five major hurricanes.

Unlike the CPC, the university team, led by atmospheric scientist Phil Koltzbach, produces broad forecasts for landfalling storms. The entire US East Coast, including the Florida Peninsula, faces a 50 percent chance of at least one storm making landfall there, compared with a long-term average of 31 percent. The Gulf Coast, which is still working to mop up after the BP oil rig blowout, faces a 49 percent chance of at least one storm striking, compared with a long-term average of 30 percent, Dr. Klotzbach’s outlook indicates

CPC sees a 90% chance of at least one hurricane making landfall on the Atlantic Coast, and 80% chance of one strike on the Gulf Coast

An International Energy Agency report released Monday notes that not only are OPEC countries nearing their lowest ever spare capacity, but developing nations are about to reach a kind of critical mass for oil demand. According to the Dallas Blog:

Demand for oil products, especially transportation fuels, is increasing rapidly. One can place blame on all those developing nations whose populations have been approaching the crucial $3,000 per capita GDP level – that pivotal moment when, as revealed by the IEA, “a middle class emerges, eager to purchase cars, fly in airplanes, install air-conditioners and, more generally, use energy consuming products. ‘People can’t blame a lack of refinery capacity, the IEA claims in refinery upgrades is proceeding apace; and doesn’t appear likely to be a difficulty in the near future. Yet overall, supply of the raw product – gas and oil – is having a harder and harder time to keep up with demand.

This is yet another indication that peak oil is upon us, ensuring higher fuel prices at the pump in the near future.

A combination of great earnings reports by Alcoa and CSX and increased oil demand in third world countries contributed to rising oil prices today, according to the Associated Press.

“After all the bad economic news over the last six weeks or so, good earnings reports suggest companies have money and they can spend some of that, and that makes people feel a little more ebullient about the market,” said Michael Lynch, president of Strategic Energy & Economic Research.

The International Energy Agency predicted 2011 global oil demand would increase by 1.3 million barrels a day, or 1.6 percent, to 87.8 million barrels a day, largely due to economic growth in emerging countries.

Thankfully, fuel prices at the pump are expected to remain steady at the pump throughout the summer - an opportunity to lock in that low price with fuel protection.

It may not cost you as much to drive this weekend, but beware! Oil prices went up $0.65 to finish the week at $76.09/barrel.

Oil supplies dropped. Could be the weather. Phil Flynn points out hurricanes on the Pacific. Or could be platform evacs ahead of Hurricane Alex.

Tune in next week for the next instalment.