Oil 'to fall to $30-$40 in 2006-07'
Posted: 23 May 2005
Oil prices will trade in a range between $30 and $40 per barrel in the medium term, during 2006 and 2007, the European Bank for Reconstruction and Development (EBRD) forecast.
"We assume there will be some moderation in oil prices" from current levels close to $50, the bank's deputy chief economist Steven Fries told a Press conference on the opening day of its annual conference in the Serbian capital.
"Our assumption for the medium term is for a gradual decline in the oil price down to the 30-40 dollar range," Fries said.
"We don't anticipate that happening over the course of 2005, but over 2006/2007 particularly as significant new supplies come on stream", resulting in a rebalancing of supply and demand levels across the oil sector, he added.
In London trading on Friday, the price of Brent North Sea crude oil for delivery in July closed 15 cents higher to $48.03 per barrel.
Oil prices surged to record high points of 58.28 dollars per barrel in New York and $57.65 in London last month on supply concerns amid strong global demand for energy.
The EBRD was holding a two-day meeting focusing on investment opportunities in southeastern Europe , where countries are battling to win EU membership.
The bank was founded in 1991 to assist the transition of former communist nations to market economies and currently invests in 27 countries.
Posted by Editor Pipeline Magazine
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