Slapping Sense Into Market, BP Chair Says $250 Oil Is Hogwash

Posted: June 11, 2008 at 5:26 am

No sooner than the CEO of Russia-owned oil company Gazprom said oil would hit $250 a barrel next year, the head of BP called him criminally insane.

According to Reuters, Peter Sutherland, "the chairman of British oil major BP (BP) rejected as "apocalyptic" a prediction by the head of Russian gas giant Gazprom of oil prices soaring to $250 a barrel by the end of next year.

Sutherland also challenged his Russian counterpart to a duel.

The reasons that the head of BP gave for moderating oil prices made sense. A need for new investment in developing existing fields and more exploration should help offset demand.

Is it any wonder that most people liked Churchill more than Stalin?

Douglas A. McIntyre

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