Growing global oil demand will cause crude oil prices to almost double to $100
The experts of CIBC World Markets say that growing global oil demand will cause crude oil prices to almost double to $100 a barrel by 2010.
Jeff Rubin and Peter Buchanann, the economists with CIBC predict in their report that supply growth will not keep up with consumption, pushing the price ever higher this decade.
''While demand forecasts are ratcheting up, those of supply growth are moving in the other direction,'' the study released Tuesday said.
''Saudi Arabia, traditionally the backstop of global supply, is already experiencing rising water rates in its mother lode Ghawar field, an early indicator of depletion that has already resulted in falling production levels in neighbouring Oman.''
The report echoes a prediction last week by American investment firm Goldman Sachs that oil could hit $105 US a barrel.
The CIBC report said exploding demand for oil in rapidly industrializing Asian economies has permanently ratcheted up global consumption growth.