Crude oil prices 'could top $100' due to supply shortfall

22 September 2009

Crude oil prices could exceed $100 (£61.43) a barrel in the future, as investment in energy exploration continues to dwindle during the recession, according to one industry boss.

Christophe de Margerie, head of French oil giant Total, warned on Monday that the effects of the economic crisis could be felt for many years to come.

In an interview with the BBC, he explained that the downturn has deterred producers from tapping into new oil reserves, meaning the world could be left facing a fuel shortage.

"If we don't move [now], there will be a problem," Mr de Margerie said. "In two or three years it will be too late."

The expert also suggested that oil prices could rise to more than $100 in the face of the potential shortfall in demand - adding that it is difficult to determine when this will happen.

UK residents might therefore wish to keep a close eye on the market, with any significant increase in crude prices likely to have a knock-on effect on the cost of home heating oil.

Last summer, crude oil reached record levels of more than $147 a barrel, before plummeting to back towards $33 as the credit crunch put the brakes on fuel demand.

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