Canadian Plastics

Oil to hit $200 a barrel: CIBC

More bad news for the embattled automotive sector: CIBC World Markets is predicting that oil prices will hit $200 per barrel in 2010. And the unprecedented rise in commodity prices will carry broad im...

July 1, 2008   Canadian Plastics



More bad news for the embattled automotive sector: CIBC World Markets is predicting that oil prices will hit $200 per barrel in 2010. And the unprecedented rise in commodity prices will carry broad implications for the auto industry.

“By 2012, there should be some 10 million fewer vehicles on American roadways than there are today — a decline that dwarfs all previous adjustments including those during the two OPEC oil shocks,” said the group’s chief economist and strategist Jeff Rubin.

CIBC World Markets also forecasted that gasoline at $7 a gallon will cause auto sales to drop to as low as 11 million units a year by 2012 — the lowest level since the early 1980s.


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