With the surge in oil prices starting to look increasingly like a speculative mania, further increases are likely in the short term as more and more speculative capital is sucked into the vortex created by rising prices. US$150 a barrel is now just a few weeks’ trading away. And beyond the speculative frenzy now underway, our assessment is that the long-term trend will remain up as supply struggles to keep up with the result being that US$300 a barrel is not inconceivable on a five-year horizon.
-Shane Oliver, AMP Capital commenting on oil at $135, May 25, 2008