The tug-of-war over oil prices has been going to the bears recently. Even with a storm near the Gulf of Mexico, crude moved down toward $112.
Some experts are taking the long view and for many of them the likelihood that oil will move up is plain and simple.
Dallas Federal Reserve Bank President Richard Fisher says that the case for huge increases in demand is unavoidable.
According to the AP, Fisher said "If China used the same amount per capita as parsimonious Japan, Chinese consumption would total more than 18 billion barrels a year, an amount that dwarfs our country’s 7.5 billion barrels." That would increase demand by a factor that OPEC and other exporting nations would not be able to handle.
"Add that to new demand for oil stemming from India, the newest members of the European community, an increasingly prosperous Brazil and so on. For those trying to discern the long-term future of oil prices, this is considerable food for thought," he said.
Who says oil won’t go to $200 a barrel?
Douglas A. McIntyre
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