Alfa Bank - $100/Barrel May Look Cheap Within 5 Years, Depending On OPEC Capacity - Bloomberg

[hatrack]

Feb. 21 (Bloomberg) -- Crude oil prices of $100 may look ``cheap'' within five years if OPEC production fails to keep pace with global demand growth, according to Alfa Bank.

``We may hit peak oil in the course of the next three, four or five years, in which case $100 oil will look somewhat quaint,'' Alfa Bank's Moscow-based Head of Research Ronald Smith said in an interview with Bloomberg television.

Peak oil is the theory that global crude production is set to decline as new discoveries fail to make up for falling output from older oilfields.

Some forecasts indicate Saudi Arabia, the largest producer in the Organization of Petroleum Exporting Countries, may be unable to reach sustainable output of 15 million barrels a day and fail to meet an annual demand increase of 1.5 million barrels a day, Smith said.

EDIT

http://www.bloomberg.com/apps/news?pid=20602099&sid=aoz6VDOFWe60&refer=energy

[Kokonoe]

1. No need to buy gas when I push a wheelbarrow to carry my cash. n/t

:)