Oil surged nearly 5 percent yesterday to cross over the $100 a barrel mark for the second time ever. Crude actually set a new all-time record at $100.10, closing one cent above the previous high on January 3rd of this year. Analysts are saying the price oil could be sustained at this level for some time. “Where can it be at the end of the year? Another 10 per cent [higher] is entirely possible,” said Mark Johnson, an energy analyst for OMFinancial Group.
OPEC might not increase output to ease high prices—despite pressure from, and fears of a recession in, the United States, the world’s largest consumer of oil. The spike comes as speculation grows that OPEC will, in fact, hold or even cut output when it meets on March 5th.
As both fuel costs and anxiety levels continue to rise, the push for hybrid technologies and other energy-efficient technologies is expected to grow.