1990s was a low price period.
But prices started to increase again in 21st century pushed by higher demand.
Goldman Sachs as the biggest trader of energy derivatives had made a forecast in March 2005 that prices could jump as high as $105 per barrel from then present levels of $50.
In July 2008 we saw the price over $147.
Now it is below $70 again.
Where will it go from here?
The answer lies in the competition between substitution effect of alternative energies versus demand effect of existing energies. As there is only one world, alternative energies is what logic dictates.
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