Their final agreement was a commitment to tabulate every closing price-per-barrel of oil for each market day of 2010, then average out those prices for the entire year from January 1 through December 31, adjusted for inflation to 2005 prices. If the year-end adjusted average comes out to $200.00 or more per barrel, Mr. Simmons wins. If it averages out to less than $200.00, Mr. Tierney wins. The winner takes the entire pot of US$10,000.00, plus interest–$5,000.00 from both parties, currently sitting in escrow.
Obviously with the current state of the world economy oil prices will not even rise above $100 for even one day in 2010. Simmons will lose big and Tierney will win.
If China sees a large rise in oil demand over the next few years, then eventually a significant rise in oil prices is likely from demand increase and inability of supply to increase to match.
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Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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