Report sees oil remaining over $100 per barrel until after election
WASHINGTON — The price of crude oil was likely to remain above $100
until 2009.
The Abraham Energy Report asserted that oil prices would fluctuate
between $95 and $115 per barrel during the fourth quarter of 2008. The
report, sponsored by former Energy Secretary Spencer Abraham, said the crude
oil market could not sustain prices that reached nearly $150 per barrel
during the summer.
"Oil prices appear to have overshot the level that could be sustained by
the market this summer," the report said. "Nothing significant will happen
until after the [U.S.] presidential election."
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The report said Saudi Arabia has assured that the oil market would meet
demand over the next few months. But Saudi Arabia and other OPEC members
were likely to reduce production should the price of oil fall below that of
$90 per barrel, Middle East Newsline reported.
"Prices below this range could force OPEC into a 'price defense' mode of
operation, and place some new sources of unconventional oil, like tar sands
projects in Canada, at risk," the report said.
