Surging oil prices predicted!

Author: Neil Kay-Jones, Online Support & User Experience Manager

We are slowly getting our heads round the constant rises in gas and electricity, but are we ready for oil to soar to $200 per barrel in as little as six months? If you can’t quite work out how that affects us all, then the BBC News online has summed this up for us:

“Oil prices have now risen by 25% in the last four months and 400% since 2001. ”

The BBC states that Goldman Sachs energy strategist Argun Murti successfully predicted rises three years ago to pass the $100 mark when at a price of $55.

This article makes for a very interesting insight into the global demand, driven by the booming expansion of countries such as China and India. Throw them in to the pot with existing demand from the US, the European Union and Japan, it can only get worse as time goes on.

If you are interested to know why these prices are so hi then take a look at this from the BBC

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This entry was posted on Monday, May 12th, 2008 at 10:02 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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    No doubt a huge problem. Don't forget about the abused dollar. Way to many dollars have been printed over the last few decades, and up until recently they've floated into paper assets -- stocks and bonds. Nobody saw those huge price rises as inflation because it felt good -- translated into higher portfolio and house prices. Not anymore. Money will continue venting into hard assets -- real things that can't be printed so easily as dollars and other fiat currencies. For a long while we'll pay for the past sins of money printing.
 
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