Plunging oil prices put paid to 100-dollar forecast

LONDON (AFP) – Oil prices have tumbled about 25 percent in six weeks to under 60 dollars per barrel, confounding expert forecasts of a spike to 100 dollars before the end of 2006.

Since August 7, when Brent North Sea crude struck a historic high 78.64 dollars per barrel, the price has plummeted almost 20 dollars to 59.32 dollars by Monday — the lowest level for six months.

In New York, light sweet crude dropped also below 60 dollars on Monday, far off its record peak of 78.40 dollars reached in July.

Only last month, analysts bet on crude futures striking 80 dollars in the short term, with some predicting even a surge to 100 dollars per barrel by the end of the year.

But since then a number of easing supply concerns have sent prices tumbling.

AFP