The price of oil could surge to $150 in five years and $200 in 10 years, a prominent German economic institute reports. "Oil supplies are becoming increasingly scarce and that will continue to drive up prices," said one energy expert. Oil prices hit $100 yesterday for the first time, and continue to hover near the triple-digit mark in today's trading.
Oil prices soared 57% in 2007 due to a weak dollar, worries about oil reserves and global conflict. With rampant speculative buying and the US Energy Information Administration expected to announce the seventh consecutive drop in crude inventories, the price is likely to reach $105 in the coming weeks, says a researcher at the DIW German Institute for Economic Research.