BGN Entrepreneur

Oil prices peaked at $147 a barrel in July 2008 and then fell sharply to less than $35 in December, as the rapidly deepening global economic downturn reduced demand for energy.
Recently, anticipating dwindling supply and rising demand this year and next, Goldman Sachs raised its oil price forecast for the end of 2009 to $85 a barrel from $65. Its forecast also put prices at $95 by the end of 2010, led by economic recovery in China. Influenced by these forecasts, US light crude has risen, leading to fears of a further increase in prices at the petrol pump.
Key to the anticipated recovery in the oil price will be the willingness of Opec, the production cartel, and in particular Saudi Arabia, to keep down production and draw stocks back to ten-year average levels, as non-Opec production continues to decline. It is warned that constraints on storage capacity remained a risk.

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