Oil Industry Headlines: Week of November 2
It’s nothing new to have a crowd of analysts weighing in on where oil prices are headed. But these days, with things so, well . . . interesting, everyday people are getting in on the act, too. From London to New York, people are stepping off the sidelines and placing their own bets. Matthew Simmons, who writes about the oil industry, “bet $5,000 with a New York Times columnist that oil prices would reach $200 in 2010,” reported Reuters. Jeff Hicks of London’s East End told Reuters “I’d put 100 pounds that oil will go up because America has a shortage.” If Hicks placed that bet on Wednesday, he did very well. Oil traded just under the $100 benchmark at $98.62 during intraday trading. Predicting $100+ oil in 2007-2008 is now old news. The real news is a recent IEA warning that oil is likely to reach $159 by 2030 due to a projected 50% increase in demand. “We are experiencing high oil prices today and if actions are not taken in years to come, we can see a supply crunch which is not good news for anybody and it may end up with very high prices,” IEA Chief Economist Fatih Birol told Reuters. Some analysts think the IEA’s warning is too conservative. Many market watchers, including Venezuelan President Hugo Chavez, are predicting that oil could hit $200 a barrel in the next few years if geopolitical tensions escalate.Published Thursday, November 8th, 2007 at 1:01 pm and filed under Industry News.