Ready for $200 a Barrel Oil?
The rumour mill has been rumbling on about oil reaching $200 a barrel by the end of the year, I forget where the stories have come from. But when the someone from Goldman Sachs reports that $200 a barrel oil is likely then you just have to sit up and take notice.
Argun Murti, energy strategist at Goldman Sachs, said that rising worldwide demand for oil and limited supply will push the price of a barrel of oil up to $200 in the next six months to 2 years. Murti's previous predictions that oil would reach $100 a barrel (when it was at $55 a barrel) were true, and with oil prices rising 25% in the last year and by 400% since 2001, it looks like $200 will be correct too.
The usual suspects in this current situation are China, with its voracious appetite for oil, and India, whose economy is booming. As somebody at the ethical clothing company Howies said in a catalogue a few years back... "and what if they all want a car?" That's more than 2 billion souls in China & India...
So much for the world reducing its dependence on oil :(