Oil to reach US$ 250 a barrel very soon, says Gazprom chief
Moscow (AsiaNews/Agencies) – With the price of oil rising, at its highest yesterday at US$ 139.89 a barrel, the head of Russian energy giant Gazprom expects crude to climb to US$ 250 a barrel in the "foreseeable future.” According to Alexei Miller, chief executive of Gazprom, the world's biggest natural gas company, the day when this happens is not far off. In the meantime his forecast produced a whirlwind of speculation.
Jeff Spittel, an analyst at Natixis Bleichroeder, said prices might reach that level only after a war or attack on major oil installations.
Yet other experts who disagree with Miller still agree that rising crude prices cannot be stopped.
“It would be a disaster for all the oil-importing countries, all the democracies and China,” says James Woolsey, the vice-president of consultant Booz Allen & Hamilton.
“And it would be hugely beneficial for the many monarchies and dictatorships that are the main suppliers.”
Some investors are already betting on Mr Miller's forecast.
However at US$ 250 a barrel, "there would be a massive shutdown of companies", says Carlos Mattei, procurement vice-president for glassmaker Vitro SAB.
And big companies would be nationalised.
In the meantime oil prices continue their upward trend. Oil futures reached the previous record of US9.12 on 6 June, a sign that inflationary pressures are likely to last for a decade.
Yesterday’s hike was partly caused though by the shutdown of StatoilHydro's 150,000 barrel-a-day Oseberg oil and gas field off the Norwegian coast after a fire broke out.
Even so the net effect is that when “there is any sign of dollar weakness, the money runs to safe harbours such as oil,” said Rick Mueller, a director of oil practice at Energy Security Analysis.
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