This report from Morgan Stanley makes for fascinating reading. The geniuses at this major investment firm have concluded that the price of oil is likely to stay high, because of tight supply and high demand.
Wow. How many figures do you guys pull down for that kind of analysis?
They also make a prediction of oil prices of $36/barrel by the end of the year. We'll see. Given my support of the Peak Oil hypothesis, I think we better get used to the idea of oil in range of $50, at least.
So I'll put this in writing. I predict that as of December 31st 2005, that the price of oil will not have stayed below $40 per barrel for more than one week. Let's see who's right - me or the boys at Morgan Stanley.
(Note - no financial wager is placed on this prediction. I just think it would just be really funny if an untrained student outguessed Morgan Stanley. Here's hoping!)