The End of Cheap Oil?

Crude prices are unlikely to fall below $50 per barrel in 2006, the Center for Global Energy Studies, or CGES, said Tuesday in its latest monthly oil report. The report forecasts that prices may continue to hover over $60 per barrel, until at least the second quarter of 2006. Investment banks predict oil prices may top $75 by the end of 2005.

“Unless both upstream and downstream capacity constraints ease, global economic growth slows dramatically, or tensions in oil producing countries ease, there is little prospect of oil prices falling far either this year or next,” the London-based CGES reported.
UPI Energy Watch via Monsters and Critics