The price of crude oil could soar to $200 a barrel in as little as six months, as supply continues to struggle to meet demand, a report has warned.
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Global demand for oil has been fuelled by China and India
With benchmark US light crude passing the $122 mark for the first time on Tuesday, the warning comes from Goldman Sachs energy strategist Argun Murti. Surging demand was increasingly likely to create a "super-spike" past $200 in six months to two years' time, he said. Oil prices have now risen 25% in the last four months and by 400% from 2001.
Mr Murti correctly predicted three years ago - when oil was about $55 a barrel - that it would pass $100, which it reached for the first time in January of this year.
Chinese demand
Soaring global demand for oil is being led by China's continuing economic boom and, to a lesser extent, by India's rapid economic expansion.
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Both are now increasingly competing with the US, the European Union and Japan for the lion's share of global oil production. This additional demand comes at a time of continuing production problems in a number of oil-producing nations. Production is down in Nigeria after the latest attacks on pipelines this week by anti-government militants, while Iraqi exports through the north of the country have been hit by renewed cross-border raids by Turkish forces against Kurdish insurgents.
Oil prices are also rising as the key US summer driving season approaches.
Economists warn that continuing high oil prices will impact on the global economy, hitting growth and fuelling inflation.
Oil prices were slightly down in early Wednesday trading, with US light crude falling back 21 cents to $121.60 a barrel. London's Brent dipped 17 cents to $120.14, back from the record $120.99 it hit on Tuesday.
