Oil to Hit $80?

A supply disruption could send crude prices to $80 a barrel, according to OPEC's Secretary-General.

Published: 03-Mar-2005

KUWAIT (Reuters) - Oil prices may temporarily spike to $80 a barrel during the next two years if there is a major supply disruption, OPEC's Acting Secretary-General, Adnan Shihab-Eldin, was quoted as saying by a newspaper on Thursday.

"I can stress that the probability that the price of a barrel of crude rises to $80 in the near future is a low probability," Shihab-Eldin told leading Kuwaiti daily al-Qabas in an interview in Vienna.

"However, I can't rule out the rise of a barrel of oil to $80 in the coming two years," he said.
"But, if the price rises to this level for one reason or another (for example a shortage of supplies from a producer nation by one or two million barrels per day), it's not expected that this spike will last long."


Visits to China, India, Malaysia and Pakistan are significant because the trip spells out the Saudi Kingdom's Look East policy, representing a new reorientation in its foreign policy that was heavily tilted toward the West.

The worst two scenarios suggest a drastic decline in output to 875,000 barrels a day by the end of 2007 and to just 520,000 a day by the end of 2008.

Bush said he envisioned a future in which a plug-in hybrid car could drive 40 miles on a lithium-ion battery, then stop at a filling station for ethanol, a fuel usually made from corn, similar to HyMotion Prius pictured below.


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