Why oil prices will rise even higher

LONDON — Oil's meteoric rise since the start of the year to nearly $150 (U.S.) has distressed consumers and policy makers the world over, but the stark reality is prices are likely to rise higher still. For two decades, prices were relatively stable, but then they rose seven-fold from a trough below $20 in 2001. Since breaching the $100 mark on the first trading day of this year they have risen around 45 per cent. Given such momentum, politicians' efforts to bring the price down could well be a waste of energy. “It rose so fast it's got a bubble feel, but bubbles can go on for very sustained periods, and underlying that is an extremely tight fundamental position,” said Stephen Thornber, head of global energy research at Threadneedle Asset Management. Antonio Brufau at the World Petroleum Congress in Madrid June 30 (Susana... [read full story]