Mukesh Ambani expects Oil Price to reach $100 per Barrel

Reliance Industries Chairman, Mukesh Ambani, said that prices of crude oil could shoot up to $100 per barrel due to poor growth in refinery and high cost of discovering new oil deposits and production.

Globalisation and aspiration are driving the economy and these are creating new challenges resulting into new solutions which had never been thought before. Mr. Ambani said that the new breed of consumers is different for they have exponential aspiration and they want solution.

Mukesh said, "Experts talk of resilient oil growth, sluggish refining growth and higher marginal costs for new discoveries and production. All these factors are no doubt true but I believe that the petrochemical industry will have to keep reinventing itself in response and prepare itself for a higher energy price than what has been used to in the last two decades."

He said that people would have to accept $80-$100 as the new norm in the ever-changing global dynamics. In worst case scenario, the price might touch three digits.

On May 14, 2010, price of the U.S crude oil fell below $74 per barrel on concerns over European debt crisis. Rise in value of dollar also affected buying capabilities of other countries. However, Mr. Ambani was hopeful about the economy of Asian region which is far more stable than the U.S. He said that by 2020 India’s balance-sheet will be the strongest in the world.