If OPEC has anything to do with it then prices will be back up higher than ever.

I've attached an article from Reuters which does a very good job of summing up OPEC's moves in recent months.

As a mechanical engineer with contacts in the Oil Industry one thing to note is that Oil conglomerates - no matter what they tell you - do not require $75 a barrel to make a profit. It costs companies with existing pipelines approximately $4 a barrel to get Oil out of the ground and refined. There of course is a high initial cost of building the refineries but it in no way justifies the high costs that they claim are 'fair.'

Hope this helped.
Source(s):
http://www.reuters.com/article/ousiv/idUSLG66045920081217

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In addition to OPEC, we need to consider growing demand internationally. China and India each have populations nearly four times that of the US and as they (very quickly) develop economically, their demand for oil for industry and automotive fuel will quickly outstrip that of the US. When this happens, we also no longer get to push as hard for good rates on what we do import, because we are no longer the most important customer.

Of course technically speaking, since inflation seems to be an overall permanent fixture of our economy, there will come a day when gasoline costs $10 per gallon, but that wouldn't be measured in today's money.

Another factor, perhaps the most important one, is simply speculation. In the markets this becomes a powerful tool to shift prices, but guessing has a very major impact on prices, if enough people do it. Can fuel stations stay in business with $2 gas? Obviously. Do cars run as well? Have there been reports of widespread panic in OPEC countries due to likely famine from lack of export revenue? The system works at $2, or $4, or $10, at least for everyone but the individual consumer. But if enough people choose to believe in rising prices, and buy into the markets accordingly, they will go up, regardless of OPECs actions.
Source(s):
http://en.wikipedia.org/wiki/List_of_countries_by_population

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Of course it will. It will go even higher, it's just a question of when. I'm thinking around next year for an increase. Everyone should go speculate on oil futures now so we can get another good bubble started.
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It's pretty much inevitable. If you want to prepare for it, figure out how to commute in your area using public transportation. You don't have to worry about gas prices if you don't have to drive!
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I think they will. I think it will take longer than this time because demand is so low. But it's inevitable. I would bet money that it will be up past $6 within three years.

I will say, I tutor a girl whose father is in the business, and he has no clue what will happen. I tried to ask him whether I should invest in oil now that it's so low, and he wasn't even willing to say yes or no.
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