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EScroogeJr (< 20)

BP chairman rejects "apocalyptic" talk of $250 oil

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June 11, 2008 – Comments (3)

Just as I said, Gazprom is one of the stupedest energy companies in the whole world. Will you believe it, these cookoos really base their future plans on hopes for $250 oil. Good luck with it.

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http://www.reuters.com/article/ousiv/idUSL1161290820080611 

BRUSSELS (Reuters) - The chairman of British oil major BP (BP.L: Quote, Profile, Research) rejected as "apocalyptic" a prediction by the head of Russian gas giant Gazprom (GAZP.MM: Quote, Profile, Research) of oil prices soaring to $250 a barrel by the end of next year.

BP chairman Peter Sutherland told the European Policy Centre on Wednesday there was no problem with available supplies of fossil fuels in the medium term, but there was a need for more investment to develop those resources.

"(I) personally don't believe in some of the more apocalyptic predictions," Sutherland said when asked about Tuesday's forecast by Gazprom CEO Alexei Miller.

"I don't believe we're in for a spike to $250 as suggested in price per barrel."

Oil traded at just above $132 a barrel in Asia on Wednesday.

Sutherland also said he did not believe speculation was a major cause of the quadrupling of the oil price in the last five years, contrary to recent comments by Saudi Oil Minister Ali al-Naimi.

The main factors were increased demand, a shortage of investment in developing new oil and gas resources and political instability risks in production areas such as Iraq, Venezuela and Nigeria, Sutherland said.

"I'm hopeful that we won't have dramatic further escalations in the price per barrel," the former European Commission and World Trade Organisation chief said.

Speaking in Deauville, France, on Tuesday, Gazprom's Miller said he expected the price of crude oil to almost double within 18 months and to take gas prices hither with it.

3 Comments – Post Your Own

#1) On June 11, 2008 at 9:12 AM, alstry (35.03) wrote:

Scrooge,

Just had breakfast with a friend who owns apartment buildings.  He said that he had the most late payments he has ever had in June.

He rents mid level buildings with working class tenants.  My guess is that food and fuel costs have risen so much, coupled with potential layoffs or wage cutbacks, that tenants are now having to make a choice between food, food, and RENT!!!

Your thoughts?

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#2) On June 11, 2008 at 10:04 AM, FourthAxis (< 20) wrote:

Uh...if BP is touting their "green" image and moving off of oil...wouldn't that support $250 oil?  Just my thoughts.

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#3) On June 11, 2008 at 11:35 AM, eldemonio (98.74) wrote:

Stuped is, as stuped does.

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