French Petroleum Institute Forecasts ‘Easing’ of Oil Prices for 2008

The French Petroleum Institute (IFP) has predicted an “easing” of crude oil prices in 2008, or a significant oil decrease in case of economic recession world, after the barrel reached 100 U.S. dollars in early January, according to reports.

Addressing a press conference Thursday, IFP president Olivier Appert said oil production is expected to increase in 2008, ” because the organization of petroleum exporting countries (OPEC) will revive production projects which were delayed in 2006 and 2007.”

“If OPEC member states begin investing, we’ll be able to notice a certain easing of crude oil prices which will reach a minimum of 65 to 70 U.S. dollars per barrel, but there will no collapse of prices,” he said.

As far as demand is concerned, “it will not decrease in 2008 at the world level, because it will remain high in emerging countries like China,” he affirmed, noting the International Monetary Fund predicted a world economical growth of 4.1 percent and approximately 10 percent for China.

RigZone