Oil Price Spike to End, You Can Bet on It

The Age – AT RECENT conferences on the future of biofuels, I have offered a $10 bet to anyone in the room that the West Texas intermediate oil price will be less than US$40 a barrel within three years. So far only three people have taken up the bet.

My view that the oil price will fall to this level by 2009 may seem ridiculous given the hysteria in the media on rising oil and petrol prices. Some commentators regard ongoing rises in oil prices as a fait accompli. However, a logical analysis of the forces driving oil prices creates an extremely plausible scenario in which oil prices will fall significantly.
The Age