22.01.15 Oil could rocket to $200

Posted on January 22, 2015
Archive : January 2015
Category : Energy News

No sooner had we posted our story indicating that oil prices could just as quickly head back to where they were some six months ago (or even higher), than Eni, the Italian oil group, warns of a potential hike to $200 a barrel – more than four times where the price stands at the moment. Admittedly, they're talking about this happening in two or three years time, but we should still be worried. This is because the oil companies have cut their development spending by some 10 – 13% because of the rapid slump in prices and this will eventually create shortages and price rises. Opec, the oil cartel, who kicked all of this off in the first place, have indicated that things will go back to normal very soon – but probably not in time to reverse some of the cut-backs in investment being taken now, not only in oil but also in renewable energy projects.

Source: BBC News

To read the complete BBC News story please click here