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Oil Could Surpass $150 A Barrel
Posted February 22, 2012
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By Tony Daltorio
Oil prices could rise to an all-time high above $150 a barrel this year, warns the world's largest independent oil trader, Geneva-based Vitol. The company specifically points to geopolitical risk in the Middle East (Iran) as the reason for the possible surge in oil from the current $120 (a six-month high) to $150 a barrel.
The oil market is currently trying to deal with oil output shortages in South Sudan, Syria, Libya and Yemen. Add to that a possible Iranian oil embargo and you have the situation described by Vitol's chief executive Ian Taylor: "The supply side is a mess."
With the global economy looking better too, demand - led by emerging markets such as China - is confounding the bears and continues to grow. This leaves a situation, in Taylor's words, where "it's difficult to see much price downside from current levels."
If oil prices even remain at current levels, it would mean that 2012 would set a record annual average price for oil. Brent crude oil, the global benchmark, averaged $109 a barrel in 2011, setting an all-time high above the previous average record of $98.40 a barrel set in 2008. READ FULL ARTICLE HERE
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