Could Oil hit $500 a barrel?

All of a sudden there seem to be reports filtering out of Iran regarding the price of oil. First reports seem to have begun surfacing on July 28. I was able to do some back tracking and found the following:

Opec: $500/bbl spike would be about Iran

Published Jul 28, 2008

The price of oil could reach $500 a barrel if the U.S. dollar begins a new slide and political tension over Iraq increases, Iranian Opec governor Mohamed Ali Khatibi was reported as saying by news agency Reuters, which cited Shahrvand-e Emrooz, a Teheran weekly paper.
The paper also reported Opec president Chakib Khelil saying Iran-related tension alone has been responsible for market jitters and higher prices. Prices are down now on less tension.
“I don’t see a fall in demand, I don’t see destruction of demand,” Khelil reportedly said. “Supply is the same, or has increased,” he added.

This next one is from Press TV Iran:

Mon, 28 Jul 2008 12:10:40

Oil price may hit $500 a barrel

Iran OPEC Governor says the oil price may reach $500 a barrel in case dollar depreciation continues and the political tensions deepen.

“In case the dollar continues to depreciate, and the political tensions continue to deepen, the oil price may even reach $500 per barrel”, Mohammad Ali Khatibi said in response to the question of whether oil price will reach $200 a barrel during the next two-three years, the Shahrvand-e Emrooz magazine reported.
Crude oil price has fallen in seven of the last nine sessions, and is down more than 16 percent from its peak above $147 a barrel earlier this month. On Friday alone the oil price dropped $2 a barrel. The lower prices have resulted from lower demand as the price has kept rising. More…

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