Motorists’ white-knuckle ride will go on if oil price heads to $100
The oil price could soon reach $100 a barrel heaping more misery on consumers
Motorists, already reeling from successive fuel price hikes, are likely to experience more nasty surprises in the next few months. Some estimates are that the oil price will increase from $80 a barrel to $100 before the year is out, heaping more misery on already stretched consumers. The persistently high price of oil is not just a concern for South Africans though, but the global economy as a whole. Steady global economic growth, forecast by the World Bank to expand 3.1% in 2018, will continue to support demand for oil, which is expected to imminently break through a historically significant peak of 100-million barrels a day. The drivers of the price are likely to be on the supply side, where political risks for oil-producing nations continue to mount. Azar Jammine, director and chief economist at Econometrix, said the trouble began a few months ago after Saudi Arabia and Russia initially cut production to bring the oil price back up from lows of $28 a barrel. But since then the tw...
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