In recession, peak oil purrs like a kitten
But beware its coming bite:
Oil has plummeted from its summer peak in recent weeks as the financial and economic slowdown reduced consumption. But many analysts believe oil could bounce back quickly once economic growth resumes. On Thursday, oil futures in New York settled at $60.77 a barrel, down $4.53, their lowest level in 19 months. Prices are now 58 percent below their peak of $145.29 a barrel in July.
As a result of higher prices and lower growth, the [International Energy Agency] slashed its forecast for global oil demand by more than 10 million barrels a day over the next two decades. It now expects oil consumption to reach 106 million barrels a day in 2030, up from 86 million barrels a day this year.
But even with the lowered demand forecast, the agency warned that the period of lower prices may not last as producers fail to increase oil supplies to meet the developing world’s rising needs. It expects prices to average more than $100 a barrel through 2015, and possibly rise to $200 a barrel by 2030.
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