Two Explanations for Surging Oil Prices

Here are two European insights on current developments in the price of oil. One is from Barclays and the other by Chris Skrebowski who maintains a list of global oil fields under development (megaprojects) and edits Petroleum Review. The reports are in close agreement.

The Oil and Gas Journal (2/11/08) reported that Barclays Capital, the investment banking arm of Barclays Bank, PLC has issued a report on the broad outlines of the current market for oil. Their conclusion is that,


Barclays expects demand in 2008 to grow by 1.7%, up from 1.2% in 2007. They do not believe economic weakness in the U.S. and possibly EU will be sufficient to dent the growth of the developing economies.