ID :
14468
Thu, 07/31/2008 - 11:50
Auther :
Shortlink :
http://m.oananews.org//node/14468
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WORLD OIL PRICE SPIRAL HAS PASSED ITS PEAK : OFFICIAL
Jakarta, July 30 (ANTARA) - The National Development Planning Board (Bappenas) believes the world crude price has passed its peak at US$146 per barrel. and estimates it will drop to between US$120 and US$130 in the second semester of 2008, a spokesman said.
"The crude price will settle at a range of US$120 to US$130, except if an open war breaks out between Israel and Iran. If the war happens , it will drive up the oil price to US$150 , or even US$200 per barrel," Bappenas Planning Director Bambang Prijambodo said here on Wednesday.
He said though the world oil price spiral had passed its peak, it was unlikely for the price to fall below US$120 per barrel.
Bambang said the price of oil in the world market would not decline significantly because oil supplies would remain unable to meet world demand.
He said rumors about Israel planning to attack Iran were not proven while the typhoon in the Gulf of Mexico had not been as bad as feared. These facts became non-economic factors that had helped to reverse the upward trend in the oil price.
On the other hand, world demand for oil from OECD member countries would remain high reaching 0.9 million barrels per day, and even demand for oil from developing countries, particularly China and India, would increase to 1.3 million barrels per day.
At the same time, oil production from non-OPEC countries has not yet increased while the spare capacity of OPEC countries is relatively low, namely 1.6 million barrels per day, most of which is in Saudi Arabia.
"The crude price will settle at a range of US$120 to US$130, except if an open war breaks out between Israel and Iran. If the war happens , it will drive up the oil price to US$150 , or even US$200 per barrel," Bappenas Planning Director Bambang Prijambodo said here on Wednesday.
He said though the world oil price spiral had passed its peak, it was unlikely for the price to fall below US$120 per barrel.
Bambang said the price of oil in the world market would not decline significantly because oil supplies would remain unable to meet world demand.
He said rumors about Israel planning to attack Iran were not proven while the typhoon in the Gulf of Mexico had not been as bad as feared. These facts became non-economic factors that had helped to reverse the upward trend in the oil price.
On the other hand, world demand for oil from OECD member countries would remain high reaching 0.9 million barrels per day, and even demand for oil from developing countries, particularly China and India, would increase to 1.3 million barrels per day.
At the same time, oil production from non-OPEC countries has not yet increased while the spare capacity of OPEC countries is relatively low, namely 1.6 million barrels per day, most of which is in Saudi Arabia.
