IEA says oil price pressure to continue in 2009

DUBLIN (Reuters) – Oil prices are set to remain under downward pressure next year as a weak global economy hits demand with worries for investment projects, the International Energy Agency’s (IEA) chief economist said on Thursday.

Oil fell below $50 a barrel on Thursday, with fuel companies planning to store millions of barrels of oil in a bid to shore up prices.

“I think there will definitely be downward pressure on the prices next year,” the IEA’s Fatih Birol told a news conference during a visit to Dublin. “The economic situation will have an impact on the demand and therefore on the prices.”

Reuters