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Economist: Oil Will Surge to $100 by Year End

Wednesday, 13 Jan 2010 09:11 AM

Jeff Rubin predicts that oil will easily reach $100 per barrel by the end of 2010, Bloomberg reported.

Rubin, the former CIBC World Markets chief economist, said that by the end of this quarter, crude will already surge to $90 a barrel.

A greater consumer demand from the Middle East and Asia will result in oil being derived from other more expensive sources such as oil sands, said Rubin, the author of an energy economics book called, “Why Your World is About to Get a Whole Lot Smaller.”

In 2007, Rubin accurately predicted that oil would rise to $100.

“It’s safe to say that we’ll see triple-digit oil prices by the fourth quarter of this year. I would expect prices to move pretty close to that level, and be in the $90 range probably by the end of March,” he said.

A decline in inventories helped boost the surge in prices this week, Bloomberg reported.

The demand for using oil has likely reached its peak in the United States and Western Europe, but developing countries such as India and China have not reached its potential, Rubin said.

In his book, Rubin has predicted that by 2012, oil will reach $200 a barrel.

“When we get into 2011 or 2012 and we start to deal with prices of $120 a barrel, $147 a barrel, $160 a barrel, that’s where I think at least the global economy becomes very challenged,” he said.

High unemployment figures have also affected the price of crude this week, Bloomberg reported.

“Crude prices have been driven by investment money,” said Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo.

“The situation in the U.S. is getting better, but people are still not really confident.”

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Jeff Rubin predicts that oil will easily reach $100 per barrel by the end of 2010, Bloomberg reported. Rubin, the former CIBC World Markets chief economist, said that by the end of this quarter, crude will already surge to $90 a barrel. A greater consumer demand from the...
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2010-11-13
Wednesday, 13 Jan 2010 09:11 AM
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