Feb 16, 2011
Weeden & Co. oil analyst Charles Maxwell says oil prices are bound to move steadily higher during the next decade, eventually hitting $300 a barrel, regardless of whatever happens in Egypt.
Oil now trades around $85 a barrel, only a few dollars higher than a year ago. It has ranged between $50 and nearly $150 during the past five years.
Demand will inevitably outpace the ability of oil companies to create supply, Maxwell tells Barron’s in an interview. Most people get that without an expert telling them so, he said.
“In three or four years, will the ability to produce the extra barrels needed be met? The answer is increasingly a question mark, and that pushes higher and higher the present values of the oil in the ground and the desire of holders of oil to add to their supplies,” Maxwell said.
This article was posted: Wednesday, February 16, 2011 at 6:02 am