Last year's predictions by "experts" of a $100 barrel had us skeptical. More hype than sound analysis, we thought. Boy, were we wrong. Oil surged to a record of more than $117 a barrel last Monday due to a pessimistic outlook about supplies from Saudi Arabia and an attack by militants on the Nigerian pipeline. More from the Financial Times:
Nymex May West Texas Intermediate hit a record $117.60 a barrel, but profit taking later dragged WTI down 50 cents to $116.19 while ICE June Brent lost 48 cents at $113.44 a barrel after touching a fresh peak of $114.86. The outlook for long-term supplies darkened as Saudi Arabia confirmed it would put on hold any further capacity expansion plans, beyond the 12.5m b/d target the kingdom is expected to reach by next year.