As Oil Leaps Again, Market Braces For Much Higher Prices

If you’re worried about high oil prices, get this: $75 oil may look considerably cheap in a few months’ time.

As oil prices tried again on Tuesday to break towards a new record of more than $75, some analysts played catch up and raised their forecasts predicting much higher prices. Not only are $70-plus oil prices here to say, they said, but $80-plus prices look increasingly likely.

“I see no reason why we won’t go to $80, and I see the possibility that we’ll hit $85,” said Mike Gordon, an energy economist and founder of ConsumerPowerline, a strategic energy asset management firm in New York. “The paradigm shift (in market forces) and the political risk are so much farther than where I thought that I see no limit to it.”
Schlumberger