Here It Is--The First Major Call For $250 Oil

Gazprom, the Russian gas monopoly, predicts that oil will hit $250 a barrel in 2009. From the FT:

Gazprom’s prediction came at a strategy presentation in Deauville, where Alexei Miller, chief executive, said: “Today we are witnessing a very great change for hydrocarbons. The level is very high and we think it [the price of oil] will reach $250 a barrel.” A company spokesman specified that Gazprom believed that level would be hit in 2009.

For those who are counting, $250 oil would mean about $7 gas. This would be halfway to the horrifying prediction of one peak-oil guru of $15 gas (see below). It would also be less than the average European pays for gas.

The Gazprom prediction follows today’s observation by the International Energy Agency that production is slowing in non-OPEC countries.

See Also:
Latest From Goldman Oil Bull: Yes, Still Going to $150-$200, Gas to $4-$6
Peak Oil Man Hirsch Scares Bejesus Out of CNBC Viewers With Tales of $15 Gas

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