$200 a barrel within six months May 7th, 2008
Argun Murti, an analyst at Goldman Sachs, has predicted that crude oil could top the $200 a barrel marker in as little as six months. The news came as US light crude rose above $122 for the first time yesterday. Murti does have a track record in correctly predicting oil price movements as 3 years ago he was the first to suggest oil would head above $100 a barrel.
Whilst it is the global demand, notably from China and India, that is drving prices higher, the man in the street will be more concerned about the impact on domestic fuel and petrol prices which continue to rise. With around 67p of the price of a litre of petrol going to the Government in tax it is within their powers to alleviate some of the pressure.
