Monday, February 28, 2011

Expert Warns Oil Prices Could Double To Reach $220 A Barrel If Mid-East Political Crisis Intensifies

Oil strategist at Nomura, Michael Lo, estimates that oil prices could top $220-a-barrel - almost double today's high of $119 - if both Libya and Algeria halt production as a result of political unrest.

He told The Daily Telegraph: "We could be underestimating this as speculative activities were largely not present in 1990-1991."

The oil price increases, coupled with such warnings, spell danger for economic recovery, as inflation feeds through the supply chain.

RMI Petrol, the body which represents fuel retailers, said prices demanded by wholesalers have risen "an unprecedented" 3p-a-litre so far this week and that increase is set to feed into pump prices by the weekend. (read more)