Oil prices continue to climb and are currently around the mid US$60/bbl mark. The question is where to from here?

It’s worth noting at the start that current prices are very good for Carnarvon’s low cost projects. But our view is oil prices will rise further in the coming years and this thematic is due to the significant under investment in new supply sources – so the potential is for a supply shortage driven price rally.

Many reporters provide commentary on oil price trends, but one I like for their detailed analysis on this topic is Goehring & Rozencwajg. If you’re interested in the topic, I suggest you read their report “Setting the Stage for an Oil Crisis” – Setting the Stage for an Oil Crisis.