World oil prices shot up to $55 per barrel on Friday following a warning by global investment bank Goldman Sachs that crude oil might have entered a 'super-spike' period which can push up oil prices to an astronomical $105 a barrel.
Goldman's Global Investment Research note, which came up with the warning, also raised the crude price forecast for 2005 and 2006 to $50 and $55, respectively, from the earlier $41 and $40.
The bank said that the surge in prices will be fuelled by burgeoning demand for energy globally. It said that these high prices would help reduce energy consumption.
If oil prices hit $100 levels, experts believe that stock markets the world over will crash and economies will be plunged into recession.
The Indian economy, amongst the fastest growing in the world, will be badly hit if oil prices hit the stratosphere. The general level of prices would shoot up with consumers having to pay more as companies and manufacturers pass on the extra load to the buyer.
However, India has been desperately trying to attain some amount of oil security by bidding for oil fields and stakes in international oil companies. Yet, analysts feel that prices in excess of $100 could put paid to speedy growth and progress.
