The price of crude is unlikely to come down in the coming 2-3 years.Goldman Sachs has raised Brent Crude average oil prices for the coming years.The average for the year 2008 has been revised from $108/barrel to $117/barrel and is further expected to peak around $150/barrel by 2010.Also it is becoming more harder to find oil to despite the Saudi effort and promise to produce more.Nigeria,member of OPEC and Africas largest oil producer is plagued by terrorism which has adversely affected about a quarter of total oil production in Nigeria.Recently Royal Dutch Shell had to temporarily shutdown production from an offshore oil field in Nigeria that produces about 200,000 barrels per day.
Alexi Miller ,head of Russian oil giant Gazprom has in fact predicted a $250 a barrel in the coming 18 months.This is surely a bit too high and too fast .Additionally since Miller is the only CEO of an oil company predicting such a rapid rise ,such a situation has a low probability of likelihood.However it definitely would galvanize efforts to find alternate fuels and that to quickly.
