Heating oil users warned of $200 a barrel forecast

23 May 2008

Oil prices could reach $200 (£101.13) in the coming months, one expert has suggested, something that would mean home heating oil users could see their bills increase considerably.

A new record was once again achieved yesterday, as oil prices surged to $135 a barrel, according to the Guardian.

Furthermore, this increase could continue hit was unthinkable levels, the leading figure in Libyan oil, Shokri Ghanem, told Bloomberg TV.

"It is out of our hands. $200 a barrel is not logical but even $135 is not logical, so yes oil could reach $200 a barrel," he said.

Problems with supply and demand are likely to keep oil prices high, Robin Batchelor from BlackRock's BGF World Energy fund added.

The Organisation of Petroleum Exporting Countries stated yesterday that its average daily price is now $121.

BoilerJuice is calling for the government to cut oil tax and has launched a petition for home heating oil users to sign.

Click here to sign up for the petition