The high price of oil

摘要

The surging price of oil appears to be at the root of all our economic woes, but as Nicholas Newman explains, there may be darker days ahead IN RECENT MONTHS, world oil prices have broken the USD100 per barrel barrier for crude oil; it was only spring last year that the price of crude was around the USD50 a barrel mark. Goldman Sachs recently said: "USD200 a barrel could be a reality in the not-too-distant future in the case of a 'major disruption'." The reality of USD200 a barrel by the end of the year is seen by some experts as unlikely, in part because OPEC (Organisation of Exporting Petroleum Countries) has been steadily increasing its production since December 2007. In fact, Western markets' inventories are steadily growing, and are expected to easily accommodate growth in consumption of 1.6 per cent. Chakib Kheli, OPEC's President, recently predicted that petroleum prices will range between USD80 and USD110 for the rest of 2008.