… and Oil price predictions keep on coming, this week we have seen many differing opinions on the price. Some claiming that it is set for an immediate drop to $50 a barrel, others that it will hit $100 dollars shortly. Also we have reports that supply can meet demands for ‘another 10 years’, or ‘20 years’ .. or even ‘hang on, we are already at the point where this is not true’.I like this piece from Oil Voice, suggesting that the price could hit $200 dollars within the next 5 years. This could be caused by the inadequate investment into the Oil industry and alternative energies, once this period of recession is over then demand will get back to previous levels, and the current reserves will be quickly used.
I’ll leave you to read the full article.
It will be interesting to see how the Oil price performs over the next 6 months, but I’m sure longer term a price of $200 will be achieved, and Oil investors everywhere are wondering exactly when !
I completely agree with higher oil prices, but not because of lack of supply. There is no lack of supply, only lack of exploration equipment, which all of the major players could afford to invest in.
No, the reason for $200 oil is not a matter of supply, but will be the result of the huge inflationary pressure we’ll see in the US, and of course, speculative trading of commodities by every dick, tom, and harry.
-The Trade Detective