Pumpjacks at work pumping crude oil near Halkirk, Alta., June 20, 2007. Think oil prices are sky high today? Article content How about US$120 a barrel — or even $185? As global oil prices soared this week — U.S. benchmark crude jumped by $8 on Friday to close above $115 a barrel — a report by JP Morgan warned the market could move higher yet. “In the immediate term, so large is the supply shock that we believe (the) price needs to increase to $120 per barrel and stay there for months to incentivize demand destruction,” analyst Natasha Kaneva wrote in a research report on Thursday. “Were disruption to Russian volumes to last throughout the year, Brent oil price could exit the year at $185.” Surging prices and demand destruction — those words are now confronting the global oil industry in a way that hasn’t been seen in years. It sparks an uncomfortable question: At what point are prices simply too high, even for petroleum producers or a resource-rich province like Alberta, causing inflation to heat up, the global economy to cool down and consumers to get squeezed? Article content “High oil prices really aren’t great for anybody. In […]
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