Now that we have our first major prediction of $250 oil, people are rushing to say that this prediction is crazy (which we had all better hope it is).
BP (BP) Chairman Peter Sutherland told the European Policy Centre on Wednesday that there is no shortage of supply for oil in the medium-term. He just believes more investment is needed to develop those resources. He blamed growing demand, dismissed speculation, and saw political instability risks in production areas such as Iraq, Venezuela and Nigeria as other factors for the high price of oil. Reuters:
(I) personally don’t believe in some of the more apocalyptic predictions,” Sutherland said when asked about Tuesday’s forecast by Gazprom CEO Alexei Miller.
“I don’t believe we’re in for a spike to $250 as suggested in price per barrel.”
We guess we’re comforted that Sutherland “doesn’t believe” oil is going to $250, but we would be happier if would provide a clear timetable for this “no shortage of supply,” as well as what, exactly, he means by “investment.”