Oil heading for $150 super-spike?

Johannesburg – Supply worries pushed oil to a record high of US$80 a barrel this week, adding fuel to Investec fund manager Tim Guinness’ predictions that a “supply crunch” could result in oil prices hitting $150/barrel by 2010.

Crude oil prices leapt on Wednesday after the Organisation of the Petroleum Exporting Countries (Opec), which controls about 40% of the world’s oil output, raised its production for the first time in more than two years.


An attempt to sustain global economic growth and allay concerns about falling crude inventories, Opec’s move was seen as too little, too late.

Confirmation of the rapid decline in oil inventories came from the US department of energy, which on Wednesday reported a 7.1 million barrel drop in oil stocks to 322.6 million barrels, the lowest level in eight months.

The fall was almost triple market expectations.

Fin24