According to news reports, oil prices went past the US$90 a barrel price point yesterday, the first time it has done so since October 2008, and the recent surge has of course been responsible for pushing up the price of petrol and other fuels.
In the US, analysts at Wall Street have pointed out that with supply tightening, the price of crude is likely to pass the US$100 mark next year; as it is, gas prices in the US could reach a national average of US$3 a gallon at the pump before Christmas – it is currently US$2.958 a gallon.
Prices have been relatively stable for more than a year, remaining around the US$70 and US$80 per barrel mark. The jump came as the US Federal Reserve announced that it was planning to inject US$600 million into the US economy and the US Government laid out an agreement to extend tax cuts.
As such, the analysts predict that oil will hit US$100 per barrel sometime next year, with rising demand from China and other emerging economies further fueling things along. While current demands can be met by increased production from OPEC member countries, the situation after the next couple of years might see economic growth slowing down as energy costs increase.
The ongoing situation should push the EV and hybrid movement back to the limelight, especially in the US, where things have gotten a bit soft on that front after gas prices returned to well workable levels after the economic crisis dissipated.
