Oil risk slumping to $30 in 2009

Oil risk slumping to $30 in 2009
# 29 December 2008 07:39 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. Oil prices, which hit record highs above $147 a barrel this year before plunging under $33, risk slumping more in 2009 as recession curbs the world’s appetite for energy, analysts say.
Deutsche Bank chief economist Adam Sieminski said oil prices could hit a low of US$30 a barrel next year, because of the global economic crisis.
The bank predicts global demand will drop by a million barrels a day - three times the fall seen this year and the largest in 25 years.
That is a lower forecast than those of most other analysts or even Opec and the International Energy Agency.
But other bankers, including those at Citigroup and Barclays Capital, are also predicting big price falls.
According to the latest news, crude oil for February delivery rose as much as $2.11, or 5.6 percent, to $39.82 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
Brent crude oil for February settlement climbed 93 cents, or 2.4 percent, to $39.30 a barrel on London’s ICE Futures Europe exchange. The contract gained 4.8 percent to $38.37 on Dec. 26.
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