MARK COLVIN: How high can oil go now?

JIM BUCKEE: I don't think that really we've seen any rationing of consumption by price. We did see it in '79, '80 and that was largely because of the sudden quadrupling of the price of oil. Now we've seen a relatively gentle approach and people have accommodated it.

So I would say you need to see oil in the $150, $200 a barrel range before it would have any particular impact on demand.

MARK COLVIN: When do you think we'll reach that?

JIM BUCKEE: The situation is always very tight in the fourth quarter because Northern Hemisphere demand increases; it's the sort of highest quarter for demands. So I'd say we'll see stress again in the third and fourth quarter of ‘08.

MARK COLVIN: Do you think it'll get to $150, 200 by then?

JIM BUCKEE: I think that's the number that's required to ration demand and I'd say so yes.


PM - End of 'easy oil' could cause climate change scramble

Expectation is already being driven.

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Telegraph Point NSW
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