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Oil price 'may hit $200 a barrel' | |
(about 1 hour later) | |
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. | 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. |
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. | 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. | 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. | 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 | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | London's Brent dipped 17 cents to $120.14, back from the record $120.99 it hit on Tuesday. |