Oil to hit $100 in 2008, predicts bank

A “steady ascent” of crude oil prices toward $100 (U.S.) a barrel continues, but the predicted date when that level will be hit remains a moving target, according to a CIBC World Markets report Wednesday.

The investment banking division of the Canadian Imperial Bank of Commerce (TSX: CM) predicts “new record highs of $80 a barrel this year and reaching as high as $100 a barrel by the end of 2008 as soaring oil demand outpaces growth in global supply.”


However, CIBC World Markets had predicted in September 2005 that oil prices in 2007 would average $93 (U.S.) a barrel and reach $100 by late this year.

Last February, it projected an average price of $69 a barrel for this year, down from a previously reduced expectation of $80.

Oil is currently at about $74 a barrel.

But triple-digit prices “are on the horizon and may be permanent as major oil-producing countries in the developing world reduce exports to meet soaring demand at home,” according to the latest projection.

Canadian Press