Monday, November 07, 2005
Oil bubble redux.
Mentioned here previously have been some facts and theory consistent with the notion that it's time to short oil, the recent big hike in oil prices is just a bubble.
The president of BP has similar ideas...
The price of oil is grossly inflated and due for a tumble as fresh supplies come on stream and users switch to other forms of energy, BP warned yesterday.
Lord Browne, BP's chief executive, said crude was likely to fall from its current level of around $60 a barrel to nearer $40, and even lower in the long run.
"Our view is the price of oil is unsustainably high and will come down," he told an energy forum in Singapore...
Lord Browne said business was adapting fast to higher prices by examining other forms of energy, while consumers are cutting back on fuel use....
Lord Browne ridiculed claims that the world is running out of oil.
"The 'scare stories' of shortage and crisis may sell books and newspapers but they are not based on facts, and they shouldn't form the basis for any serious policy making," he said... [Telegraph]
