Oil price 'may hit $200 a barrel'

[shadow2get]

Source

The price of crude oil could soar to $200 a barrel in as little as six months, as supply continues to struggle to meet demand, a report has warned.


Global demand for oil has been fuelled by China and India

With benchmark US light crude passing the $122 mark for the first time on Tuesday, the warning comes from Goldman Sachs energy strategist Argun Murti. Surging demand was increasingly likely to create a "super-spike" past $200 in six months to two years' time, he said. Oil prices have now risen 25% in the last four months and by 400% from 2001.

Mr Murti correctly predicted three years ago - when oil was about $55 a barrel - that it would pass $100, which it reached for the first time in January of this year.

Chinese demand
Soaring global demand for oil is being led by China's continuing economic boom and, to a lesser extent, by India's rapid economic expansion.



Both are now increasingly competing with the US, the European Union and Japan for the lion's share of global oil production. This additional demand comes at a time of continuing production problems in a number of oil-producing nations. Production is down in Nigeria after the latest attacks on pipelines this week by anti-government militants, while Iraqi exports through the north of the country have been hit by renewed cross-border raids by Turkish forces against Kurdish insurgents.

Oil prices are also rising as the key US summer driving season approaches.
Economists warn that continuing high oil prices will impact on the global economy, hitting growth and fuelling inflation.

Oil prices were slightly down in early Wednesday trading, with US light crude falling back 21 cents to $121.60 a barrel. London's Brent dipped 17 cents to $120.14, back from the record $120.99 it hit on Tuesday.

Considering the current Petrol Prices at approx Rs. 50-55 per Litre for the current $120/barrel, it would cost us ~Rs. 86-90 per Litre when it reaches $200/barrel.

Wonder who will be driving ? Billionaires ? Millionaires ?
And all of them are eagerly waiting for Tata's Nano to arrive at that time.

[ico]

$200 kya......$300 bhi hoga.........sabh samay ka khel hai......

Man, it is even going to touch $300 in 1-2 years......

[mail2and]

More money for the Middle Eastern and OPEC oil barons, while poor people in India and China suffer from rising food prices because of rising transport costs.

100 more 150-floor towers for Dubai? You bet.

[Hrithan2020]

U cant exactly stop people from buying cars or refrain them from driving.Its high time we start using "hybrid" cars like toyota prius which offer better mileage.Hope it comes to india soon.It nano is gonna be a big hit,wonder where the oil prices may reach to?.

With further research,maybe the cars that run on "air" or battery or even solar energy would become more popular.(It should drive at least 240 km without recharge,should have a top speed above 90kmph,4 seater & should look decent too)

Has anyone read about the abiogenic theory regarding the petroleum origin.Would be v.interesting if it were true.

[techtronic]

IMHO Countries like Singapore set a good example by discouraging the sale of cars. Public Transport is at its very best in Singapore.

[slugger]

forget petrol/diesel power.....use pedal power

http://thinkdigit.com/forum/showthread.php?t=86627

after almost a millennium of not cycling I am planning to buy 1 myself to go to the gym

[Who]

Yo Speed is the way to go , CNG is a temporary sloution i guess.

[enticer86]

Also pls note, Natural resources and Power Generation, Energy in-toto is the best investment sector!

[iinfi]

hey folks .... time to hit the road with your girl friends .... n go on a long drive ...
if you postpone it by even a few more months you wont have money for dinner n motel .... ha ha ha

[subratabera]

Well, in stock market or any type of trading (such as oil futures), you can be almost sure that the top is near when everyone is predicting more. So we can safely assume that oil price is near its high and will start its southward journey soon.