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Oil price 'may hit $200 a barrel' | Oil price 'may hit $200 a barrel' |
(about 10 hours 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. |
Goldman Sachs energy strategist Argun Murti made the warning as benchmark US light crude passed the $123 mark for the first time. | |
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 by 25% in the | |
last four months and 400% since 2001. | |
US sweet, light crude hit an all-time peak of $123.53 (£63.25) on Wednesday, while London Brent crude jumped to $122.32. | |
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. |