By Ambrose Evans-Pritchard
Oil prices threaten to hit $200 a barrel in a final "super-spike" over coming months as producers fail to keep pace with blistering demand from China and the Middle East, according to a controversial report by Goldman Sachs.
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"We believe the current energy crisis may be coming to a head. A 'super-spike' end game may be in the early stages of playing out," said Arjun Murti, the bank's energy strategist.
Goldman Sachs said a chronic lack of supply would lead to a "dramatic and continuous rise in oil prices", followed at some point by a sharp fall in oil demand as consumers retrench.
US crude prices hit a fresh high of $122.35 a barrel yesterday as rebel attacks on Shell installations in Nigeria and tensions in northern Iraq continued to strain markets already caught in a crunch.
Prices have doubled over the last year in what amounts to a massive transfer of wealth from the Atlantic region to the rising commodity powers.
This week's jump in prices comes despite the partial recovery of the dollar against the euro, suggesting that alleged investor appetite for oil as a sort of "anti-dollar" is no longer driving the market - if it ever was.
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