Monday, January 7, 2008

$200 Oil, Germany's Leading Economic Institute Predicts

Germany (TGW) – Oil will hit $200 a barrel, one of Germany’s leading economic institutes predicted today.

"Oil supplies are becoming increasingly scarce and that will continue to drive up prices," Claudia Kemfert, the energy expert of the DIW German Institute for Economic Research, told Berliner Zeitung newspaper.

The Institute predicted $150 oil in 5 years and $200 oil in 10 years. Kemfert added prices will likely reach $105 in the coming weeks.

Few analysts see the oil market calming anytime soon. "We find it difficult to contemplate any scenario which doesn't see annual average prices going steadily higher," said Kevin Norrish, an analyst at Barclays Capital.

Via :: Der Spiegel