OECD Predicts $190 Oil In Seven Years

A new report from the OECD says the price of Brent crude will hit $190 (h/t FT).

The reason is that worldwide demand is set to rebound — the group says should world growth return to anything close to pre-crisis rates there will be a commensurate price increase "far above early 2012" levels.

Here's the chart:

OECD

The only thing that could keep prices contained is if demand becomes much more sensitive to prices, something that the papers authors say doesn't actually happen much today.