One Wall St. analyst is forecasting that oil will go for $200 a barrel by 2010.
According to The Financial Post "Jeff Rubin, chief economist at CIBC World Markets says oil production will barely grow over the next five years, edging up barely more than 1-million barrels a day over the next three years, and only half a million barrels a day between 2010 and 2012."
The forecast also says that gas prices in the US will reach $7 a gallon.
Although the analysis is a minority report, it does highlight the fact that more and more experts in the energy field do not see the price of oil retreating from its current level of almost $120. That, taken with the increase in the price of agricultural commodities, could make it certain that inflation will be part of the economic picture for some time to come.
Douglas A. McIntyre