Price of black gold makes for a bleak analysis

ASSESSING the future for oil prices offers little comfort as the black gold hovers close to record highs at $115 per barrel yesterday.

Such prices should encourage oil producers to increase supply, but that’s unlikely to happen.

In a pretty bleak analysis, Alan McQuaid, chief economist, Bloxham Stockbrokers, says the high cost of producing more and political constraints on new supplies does not augur well.