$100 U.S.-a-barrel oil foreseen by late 2008 (Toronto Star)

[marmar]

PETROLEUM
$100 U.S.-a-barrel oil foreseen by late 2008

Jul 19, 2007 04:30 AM

A "steady ascent" of crude oil prices toward $100 (U.S.) a barrel continues, but the predicted date when that level will be hit remains a moving target, according to a CIBC World Markets report yesterday.

The investment division of the Canadian Imperial Bank of Commerce predicts "record highs of $80 a barrel this year and reaching as high as $100 a barrel by the end of 2008 as soaring oil demand outpaces growth in global supply."

However, CIBC World Markets had predicted in September 2005 that oil prices in 2007 would average $93 a barrel and reach $100 by late this year. Last February, it projected an average price of $69 for this year, down from a previously reduced expectation of $80. Oil is currently at about $75 a barrel.

Triple-digit prices "may be permanent as major oil-producing countries in the developing world reduce exports to meet soaring demand at home," the report said.

http://www.thestar.com/Business/article/237423

[Initech]

1. Yup, and bombing Iran will put oil prices over $250 a barrel.

Fuck the oil companies. God I hate them.

[karlrschneider]

2. The thing is, supply and demand are no longer the deciding factors (if they ever were)

partly because of the inevitable facts that demand is absolutely increasing and supply is undeniably decreasing and are only slightly more predictable than geopolitical or natural events. Speculating on petroleum futures for the next couple decades is going to be little more than gambling on a hunch.

[AntiFascist]

3. Excellent point...

if supply continues to drop then oil company profits will eventually drop as well, no matter what the price is set at, although prices will have to go higher as long as oil is a commodity.

[entanglement]

4. Brent crude touched $78.4 last week - just 25c short of the record

[Rageneau]

5. BartCop predicted we'd see $100/bbl oil over a year ago.