Oil prices enter "super-spike" phase

[kliljedahl]

Goldman analysts disagree with theory that prices peaked in '05; see five more years of price hikes.

LONDON (Reuters) - Already sky-high oil prices have entered a "super spike" phase that could last for four more years as global demand booms and supply growth slows, Goldman Sachs analysts said Tuesday.

"We disagree with what appears to be a growing consensus that crude oil prices reached their peak levels earlier in 2005," said the firm's Global Investment Research.

The analysts said oil demand remained resilient and supply growth lackluster, prompting them to keep their average U.S. crude price forecast for next year unchanged at $68 a barrel.

Oil futures on the New York Mercantile Exchange have averaged $56.59 so far this year.

The group also predicted oil prices could see 1970s-style price surges to as high as $105 a barrel during this period.

"With WTI oil prices on-track to average about $57 a barrel in 2005, we think the past phase will be remembered as the first of what could be a four-to-five-year 'super-spike' phase," their report said.

Goldman Sachs first mentioned a super-spike phase in March, five months before U.S. oil prices skyrocketed to a record $70.85 a barrel. Prices have since eased.

Supply concerns

[jus_the_facts]

1. SIGH....

....kicked and nominated. :nopity:

[kliljedahl]

2. Kick

Keith’s Barbeque Central

[MadHound]

3. Makes me happy that I've got my little scooter

55mph, 100mpg, fun little bike to ride.

Should be able to take that savings and roll it over into a woodstove next summer, for we all know that heating prices will be going up next few years also.

[alittlelark]

4. I wish I could find a 'scooter' that fit my 2 kids, their backbacks,

musical instruments, and their friends or3 (each). I have seen a few online, but nothing in a showroom.

Sigh.

[mhr]

5. See This Previous Post On Peak Oil - What The Super Wealthy Read

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=179257&mesg_id=179257

[PATRICK]

6. After the spike?

Why should a dwindling supply stabilize if other measures do nothing except slow down the inevitable, if even that?

Reduce consumption by a dying off of the human race? I just wonder what kind of healing correction takes place after several years when the actual situation can only get worse. The oil companies will give back their profits by selling what's left under cost?

Weird disregard of certain implacably certain things in the near future.