Oil prices will soar above US$130 a barrel by late 2011, a new poll found, and one in five traders said they expect oil to hit US$150 this year, level some economists say could trigger a recession.
With no end in sight to the unrest in the Middle East and North Afria, the majority of the 32 leading oil traders, bank analysts and hedge fund managers surveyed since Monday said they expected oil prices to resume their climb later this year, after a short-term retreat.
Higher prices already are starting to have an effect in the United States, the world’s largest oil consumers. Watch sales of new and used cars for early signs that hte price surge was hurting economic growth. If car price slip, I would start to get worried that maybe then we’re starting to see oil prices bite into the outlook.