Oil: Two bills a barrel by 2035?

PARIS — China’s short on oil and that’s bad news for everyone else in the world that has to fill up a truck or car.

Global economic recovery is expected to drive prices back up in the coming years following recent declines during the recession, says the International Energy Agency.

The IEA predicts that global oil prices could surpass $200 a barrel by 2035 as supplies are strained by rising demand in China, India and other emerging markets.

Chinese demand, which already accounts for more than half of global demand, is projected to rise from just over 8 million barrels a day last year to more than 15 million by 2035.

By 2015 prices will likely be in the $100-a-barrel range, the IEA predicts.

The predictions come as prices passed $87 a barrel, the highest in two years.

The IEA expects natural gas and unconventional sources of oil such as the Canadian tar sands to play a bigger role as crude oil output slows down by 2010.

In the U.S. this week, the average price of a gallon of diesel jumped nearly a nickel to $3.116 – the highest it’s been since May, according to the Department of Energy Monday.

The highest prices were in the west coast and the central Atlantic region.

The average price of diesel in Canada this week is $1.07 a liter, with prices hitting as high as $1.15 in northern Quebec and as low as 97 cents in southern Alberta. 


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