Oil prices are set to rise to as much as $120 a barrel by the end of
2011 but this will not be accompanied by a crash as seen in previous years,
says Dalton H Garis, Associate Professor of Economics and Petroleum Market
Behavior at Abu Dhabi-based The Petroleum Institute.
"Oil prices will go
up to $120 a barrel by 4Q11 as demand is outpacing supply at the current
$70-$90 a barrel price. Also, China and world economy is continuing to grow and
recover so people in the market are less willing to sell at lower prices,"
he says. He adds: "We have not added meaningfully to oil supply in the
past couple of years, so we will be back to 2008 only there won't be a crash as
the growth will be steady and linear."