Info & News
Imagine How High Petrol Prices Will Go
From the June 18 2009 BNZ Weekly Overview report:
Here is a thought which businesses and car owners should take notice of when considering their plans for the next few years. The global economy is currently undergoing its worst downturn since the Second World War. Yet oil prices are at US70 a barrel and at their low point in February only briefly got to US$35 before shooting back up (See image below).
Oil prices have risen in spite of consumption being down from a year ago partly because of anticipation that demand will start strengthening again before the end of the year, partly because investors have shifted back into the markets, and partly because of expectations that soon we will once again be asking ourselves where the oil will come from to feed China and other fast developing countries. There are some forecasters picking the price will be back at US$150 a barrel again by the end of 2010. That seems quite possible and in light of that we should all take advantage of this current breathing space to think about how we will adjust to that new surge in price which may be more sustained that last year’s jump up. Car size and type, where to live, public transport capacity, efficient machinery etc