Slowdown may end oil surge

THE economic slowdown in the US and its impact on China and India can potentially reduce energy consumption and affect oil price negatively, a leading banker has said.

John R Wright said that none could say for sure the oil price would remain at the current high level for long.



At the beginning of 1985, the oil price reached $37 per barrel. At that time, many energy experts said the oil price would continue to rise. International energy major Shell even projected the oil price to go up to $60/b by the end of 1986 or early 1986.

But by the middle of 1986, the oil price had collapsed to $9/b, much against the projections, he said.