Farm Bureau economist expects triple digit oil prices
Farm and Ranch January 20, 2010 American Farm Bureau Federation Senior Economist Bob Young says agriculture could take it on the chin this year when it comes to gasoline and diesel prices. He expects to see crude oil top $100 a barrel this year. Young: “I will say it is a very different situation I think from what se saw back in 2008. Don‘t forget that we saw $140 a barrel oil in the middle of the year but we were back down to $30 a barrel oil by Christmas of that year. I do not think that is the same situation we are in today.” Young says oil supplies are tighter and demand by major players, China and India, is picking up with an improving global economy. Young: “We also have a noticeably weaker dollar and I think when you put all that together it is not going to surprise at all to see oil prices in 2011 in the triple digit range.” The Farm Bureau economist sees natural gas prices, a key fertilizer ingredient, rising more slowly. Young: “Natural gas prices have not shown that same kind of percentage gain like we have seen in oil prices mainly because it seems like every day you turn around we are getting reports of some big new find or whatever, development of some new gas field, that seems to be keeping a lid on natural gas prices.” Young is forecasting a ten percent rise in overall fertilizer prices with some individual products rising 25 to 30 percent. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net. ? ?
