Weekend Edition: Oil may hit $100 sooner than expected

Welcome to the weekend edition, a small collection of links to interesting personal finance related articles and economic news from around the web.

Oil may hit $100 a barrel by Q4 2011! This is what JP Morgan forecasts in a report published by Reuters. JP Morgan used 3 reasons for this increase: QE, China and France.

While QE (dollar devaluation) and China (increasing consumption) are easy to understand what’s up with France? Apparently a strike at France’s largest oil port Fos-Lavera since September 27 and industrial action at refineries reduced middle distillate inventories there by 8 million barrels in October. Rebuilding fuel stocks as soon as the strike ends might contribute to the price increase.

As much as my portfolio is oily, I am not ecstatic with the news if more dollars are spent on oil and less dollars are spent elsewhere in the economy. A $100 oil barrel might trigger demand destruction and limit or stop growth in many poorer nations who are relying on this cheap source of energy. It might also slow down any semblance of economic recovery in some countries.

I’ve always said, oil above $70 keeps everyone happy, around $80 a barrel is even better but I don’t find $100 a barrel justified just yet!

Further reading on the economy:

Oil may hit $100 on China, QE and France: JP Morgan

Dollar Outlook `Clearly Negative’ for Next Six Months, Deutsche Bank Says

Hoenig Says Excessive Liquidity Can Lead to `Very Bad Outcomes’

Bondholder `Immunity’ to Losses Challenged as Irish Bail Banks

Europe Seen Avoiding Keynes’s Cure for Recession

On to our weekly blog roundup:

Invest It Wisely: College: Is It a Complete Waste of Time?

Dividend Monk: The Path Between Fear and Overconfidence

DIY Investor: The Inmates Are Running the Asylum

Dividend Dollar: Don’t Let Your Emergency Fund Rot

Balance Junkie: Stock Allocation All or None?

My Own Advisor: Why I’m thankful for low TransAlta prices

The Dividend Guy Blog: Dividends for Q3 2010 and Outlook for Q4 2010

Money Reasons: My 90% Dip in The Value of One of My Stock

Enjoy your weekend folks!