Famed energy analyst Jeff Rubin is banging the drum again about an imminent oil spike.
Rather than state what to him is probably obvious — that demand is surging and supply is not — Rubin turns it around in his column at Canada’s Globe & Mail:
Does anyone still believe the reassuring forecasts from discredited feel-good organisations like the International Energy Agency about new sources of cheap supply, like those that once flowed from places like Prudhoe Bay in Alaska or the North Sea? If so, where is that supply of new affordable oil coming from? Surely not from tar sands or from ultra-deep water fields six miles below the ocean’s floor.
And what will suddenly put the brakes on world demand over the next year that will pull oil prices back from the precipice of triple-digit range? Are car sales about to tank in China and India over the coming months, suddenly halting the otherwise insatiable demand from these countries for more oil? Will OPEC suddenly start charging its drivers and its utilities world oil prices and halt the explosive demand growth in their own economies for the very oil they are supposed to supply to the rest of the world?
Ultimately, he’s calling for triple digits later this year and a new high — beyond the $147, 2008 high-water mark — next year.
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