Gas Week

EWN Publishing

21 September: Crude oil rallies through $US84 a barrel for the first time in New York; Traders – and Iran – expect $US100 a barrel oil

Posted by gasweek on 26 September, 2007

Crude oil rallied through $US84 a barrel for the first time in New York on Thursday night when the October futures contract expired.

Prices slipped marginally in Asia on Friday and the November contract was fetching $US81.57 a barrel. Traders are now eyeballing $US100 a barrel oil. In inflation-adjusted price terms, that is where oil was in early 1980 during the Iran-Iraq War.

Iran suggests $US100 a barrel oil: Iran’s representative to the Organisation of the Petroleum Exporting Countries said $US100 a barrel oil was possible, but did not say when. “Yes, any outcome is possible. If the explosions in Mexico continue and there is severe cold and if some nations in OPEC experience turbulent political condition … and a lot of other issues can make the oil prices go even higher,” Hossein Kazempour Ardebili told Iranian radio.

Goldman Sachs – ‘$US90 per barrel’: Goldman Sachs analysts said in a research note they were raising their end-2007 price forecast to $US85 per barrel, “with a high risk of a spike above $US90 per barrel”. They made a 2008 average price forecast of $US85 a barrel, with a year-end target of $US95.

$US150 a barrel: Former Royal Dutch Shell chairman and geologist Ron Oxburgh forecast oil prices of $US150 a barrel in the years ahead. “We can probably go on extracting oil from the ground for a very long time, but it is going to get very expensive indeed,” Oxburgh said in an interview in The Independent “And once you see oil prices in excess of $US100 or $US150 a barrel, the alternatives simply become more attractive on price grounds if on no others.”

The Australian Financial Review, 22/9/2007, p. 47


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