When oil prices double, renewables will be a money-spinner.

Oil is the lifeblood of industrialised economies but many people overlook its effect on the price of almost everything else apart from during times of tension in the Middle East – or when we switch on the winter heating.

But Citywire AA-rated Tim Guinness reckons there are good reasons for starting to look at it now, arguing that oil will double in price to $150 (
Mr Guinness, manager of the Investec Global Energy fund, made his comments after a report from the International Energy Agency (IEA) warned the world would face a “supply crunch” in 2012 due in large part to falling output from oil producers.

The report led to a spike in oil prices to their highest level in nearly a year at $75.08 a barrel, getting close to its highest ever level.

Mr Guinness says he agrees with the IEA forecast and expects the oil price to rise steadily during the next five years as supplies dwindle.

AA-rated Ian Henderson, manager of the JP Morgan Natural Resources fund, said there could be an oil shortage before this date, due to lack of investment in the industry.

Telegraph