Oil price rally to continue says poll
London, June 28, 2008
Oil prices will rise for the foreseeable future, a Reuters poll has found, marking the first time average forecasts have envisaged the extended rally has years to run.
Previous Reuters polls showed analysts overall predicted US crude oil, viewed as the global price marker, would stop rising this year and fall in 2009-2010.
This month's poll showed US crude this year would average $113.24 a barrel, up by about $6 from the last poll in late last month. The average price would be $113.25 next year and $115.59 in 2010.
The average price for oil last year was $72.30.
North Sea Brent, another major price marker, is expected to average $112.02 this year, compared with $106.12 in the last poll. It will dip slightly next year and rise again in 2010.
Although high prices have made some consumers use less fuel, the oil market has carried on rising because of robust demand from emerging markets such as China and India and concerns over future supply.
A complex mix of inflation, interest rates and a weak dollar has also attracted a large inflow of investors' money to oil.
"We have substantially raised our crude oil forecasts as the resilience of prices, even in the face of a withdrawal of speculative funds, has become increasingly evident," Standard Chartered's Helen Henton said.