Gold News

Investing in gold appealing after IEA predicts major oil price rebound

Gold investment could be boosted after it was revealed on Wednesday (November 5th) that the International Energy Agency (IEA) believes oil prices will rebound to over $100 per barrel in the near future.

Gold prices have traditionally been linked to the price of crude oil, which has dropped considerably to between $60 and $70 per barrel in recent weeks.

But now the IEA will claim in its flagship World Energy Outlook report - set to be published next week - that oil prices will rise to over $100 per barrel between 2008 and 2015.

In addition, the world's energy watchdog has also reassessed its long-term expectation that the price will hit $108 per barrel by 2030 and instead believes that the figure may be over $200 per barrel.

One section of the report reads: "While market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over."

The IEA has arrived at its conclusion because it feels that companies will struggle to produce enough oil as some of the oldest oil fields in the world are currently undergoing a major decline.

The appeal of investing in gold was also heightened recently when the 13-country Organisation of the Petroleum Exporting Countries cartel announced that it will be cutting oil output by 1.5 million barrels per day.

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