WASHINGTON (Reuters) - China's growing thirst for petroleum, tight supplies and little spare production capacity will keep oil prices volatile through 2030, with the possibility of spikes as high as $100 a barrel, the International Monetary Fund said Thursday.
"In short, it will continue to be a rocky ride going forward, with a wide band of uncertainty surrounding high expected prices," said Raghuram Rajan, the IMF's chief economist.
As living standards improve in China, India and other developing nations, oil demand will increase, especially for cars and trucks, Rajan told reporters. The IMF forecast indicates that China will be consuming nearly as much oil in 2030 as the U.S. consumes now. Currently the U.S. consumes about a quarter of the world's oil production.
IMF: Oil could hit $100, hurt growth