Friday, 8 August 2008

Supply gap could mean oil hits $200 a barrel

Just in case you thought the recent fall in the oil price was a new trend....

Only a collapse in the global demand for oil can save economies from a supply crisis and crude prices reaching more than $200 a barrel, according to a report out today.

Energy expert Paul Stevens says that governments and companies are investing too little to meet future needs and a "supply crunch" will hit within "five to 10 years."

His report, for the Chatham House think tank, dispels hopes that the recent 20pc fall in the oil price from its $147.27 peak might herald a return to more manageable levels. "A spike of over $200 is possible," Mr Stevens concludes.

(Full article in the Telegraph)

And remember that "a collapse in global demand for oil" is not going to happen because we've moved to renewable energy, it's going to happen because there's a global recession.

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