As oil and gasoline prices surpass $134 per barrel and $4 per gallon, respectively, it is clear that significant change is underway in global energy markets, portending major challenges for the global economy and energy security. A perfect storm of demand and supply factors is driving the high oil prices. Goldman Sachs predicts oil will reach $200 per barrel by the end of the year--exactly where Osama bin Laden said it should be back in 2001. Absent significant changes, high prices are here to stay, and, a correction notwithstanding, may keep increasing in the long term.
What Is Driving the High Oil Prices?
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- Written by RC_Anderson
As oil and gasoline prices surpass $134 per barrel and $4 per gallon, respectively, it is clear that significant change is underway in global energy markets, portending major challenges for the global economy and energy security. A perfect storm of demand and supply factors is driving the high oil prices. Goldman Sachs predicts oil will reach $200 per barrel by the end of the year--exactly where Osama bin Laden said it should be back in 2001. Absent significant changes, high prices are here to stay, and, a correction notwithstanding, may keep increasing in the long term.
