Oil industry predicts falling prices



OPEC predicts less oil demand: The Organisation of Petroleum Exporting Countries earlier this month said demand this year would rise just 1.3 million barrels a day, 80,000 barrels less than expected two months ago. Analysts are predicting crude oil prices of about $US50 a barrel rather than today’s $US70.

US analyst predicts 25pc production surge by 2015: The catalyst for the new forecasts was a prediction by the respected US analyst Cambridge Energy Research Associates chairman Daniel Yergin, author of oil industry history The Prize, that oil and natural gas production capacity should surge 25 per cent to 110 million barrels a day by 2015.

Saudi minister forsees potential for price plummet: Saudi Arabia’s oil minister Ali al-Naimi warned earlier this month that oil price hikes and global oil demand could soon disappear, saying prices could easily "plummet" in the near future if an economic crisis drives industrialised nations to find other sources of energy.

Analyst survey finds expectation of drop in 2008: A survey of analysts by Reuters indicated oil prices were expected to fall significantly in 2008 as years of sky-high crude prices sapped global demand and production expanded.

The Australian, 29/8/2006, p.7

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