More bad news for motorists, business and home owners as a barrel of oil reached $135 dollars today, marking a 40% increase so far this year.
The news followed a report from the International Energy Agency, that global supplies could fall short of demand in the next 20 years. The official findings of the report will not be published until November, but are expected to show that crude supplies could be far tighter than previously predicted.
“The oil investments required may be much, much higher than what people assume,” Fatih Birol, the IEA’s chief economist and the leader of the study, said. “This is a dangerous situation.”
Investment bank Goldman Sachs is advising its clients to buy oil now for delivery in eight years, to protect themselves from further increases.
Motorists can expect to see yet another increase at the pumps just in time for the school holidays.
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