Former Shell boss predicts $5/gal gas in 2012

Zach Bowman — Tue, 28 Dec 2010 13:01:00 EST

Filed under: Etc.

With fuel prices in a temporarily lofty spot thanks to the holidays, it's hard to think of the price of a gallon of gas as a bargain, but according to the former president of Shell Oil, that's exactly what it is compared to what we'll see just one short year from now. While speaking with Platt's Energy Week Television, John Hofmeister said that he fully expects gas prices to be above $5.00 per gallon by the end of 2012. That stance puts Hofmeister firmly in the worst-case scenario club, though other analysts are barely any jollier in their predictions.

Tom Kloza, who serves as the chief oil analyst with Oil Price Information Service, believes that Hofmeister's predictions will come true, just not in the time-frame that the former Shell head honcho has predicted. Instead, Kloza says that he expects $5.00/gallon fuel to show up within the next decade. If so, we can probably expect to see a repeat of the financial shock that occurred when fuel prices shot up in mid-2008. The predictions are enough to make us a little queasy, so you have to really feel for our friends in Blighty - the UK recently saw gas prices spike to $7.30 a gallon. What will their prices be in 2012?

[Source: CNN Money | Image: Kari_Marie via cc 2.0]

Former Shell boss predicts $5/gal gas in 2012 originally appeared on Autoblog on Tue, 28 Dec 2010 13:01:00 EST. Please see our terms for use of feeds.

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Kuwaiti Oil Minister reportedly says OPEC won't increase production until prices hit $100/barrel

Sebastian Blanco — Thu, 11 Jun 2009 16:57:00 EST

Filed under: Trends, Plants/Manufacturing, Earnings/Financials, Middle East

America might get most of its oil from Canada, but the moves that OPEC makes still reverberate here. Thus, a statement by the Kuwaiti Oil Minister Sheikh Ahmed al-Abdullah al-Sabah to reporters yesterday probably won't help decrease domestic gasoline prices any time soon. OPEC's al-Sabah said that the organization will not consider increasing production until the price of a barrel of oil reaches $100.

Currently, the price is around $70 a barrel - up almost 60% this year - but way, way down compared to the highs of 2008. Oh, and when the $100 price per barrel threshold is reached, only then will OPEC "maybe" consider putting more supply into the market. The organization sees the recent rise in prices as the result of investors looking for good places to put their money, not because demand for the product is rising. Over the middle-to-long term, many expect forecasters expect prices to easily surpass $100 a barrel once again.

[Source: Bloomberg | Image: David McNew/Getty]

Kuwaiti Oil Minister reportedly says OPEC won't increase production until prices hit $100/barrel originally appeared on Autoblog on Thu, 11 Jun 2009 16:57:00 EST. Please see our terms for use of feeds.

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