Three Record-Setting Days Has One Analyst Thinking Big, And Others Thinking About Peak Oil
Thursday’s oil topped $82 a barrel, capping — perhaps — three straight days of record high prices, according to numerous reports in the press. At least one big name analyst foresees prices rising to at least $85 and perhaps $90 by the end of the year.
Light sweet crude for delivery rose 31 cents to $82.24 a barrel, in New York’s main futures contract, according to AFP.
Even before the price topped out today, Goldman Sachs had forecast $85 a gallon barrels by year’s end, with “significant risks of a spike above $90″ according to numerous reports.
Why? High demand and tight supply.
All this talk about a gap between demand and supply gets people talking about Peak Oil — the idea that the world has pumped about as much oil as it can — cheaply anyway — and we’re looking sooner rather than later at an era when demand consistently outpaces supply. OPEC, when it met earlier this month, agreed to increase oil supply by a “token” amount, to use the word used by the Associated Press. Read More
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