Thursday, November 6, 2008

Good bye to cheep oil

The oil price will shoot back through $100 a barrel as soon as economic conditions return to normal, and will break through $200 threshold by 2030, say officials at the International Energy Agency.

The world energy watchdog is certain the "era of cheap oil" is over, according to research due to out next week. Indeed last year it had predicted the oil price would reach $108 in 2030 so has more than doubled its long-term price target.

"While market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over," says the IEA in the World Energy Outlook report, obtained by the Financial Times ahead of its release next week.

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