No Cheap Oil For Years, Says World Bank

Cape Town – Oil prices were likely to recede from their high levels to between $104 and $108 a barrel only in three to five years as world demand contracted and production increased, World Bank chief economist Justin Lin said yesterday.

New technologies, increased energy efficiency and lower consumption would drive down demand and prices, Lin said at his first media conference since taking office.
He was speaking during the annual World Bank conference on development economics which has drawn delegates — including policy makers, academics and researchers — from about 70 countries.

Yesterday the crude oil price fell to about $136 a barrel from the high of $139 last week.

Nobel Laureate in Econo-mics and Commission on Growth chairman Prof Michael Spence agreed with Lin, and argued strongly against any artificial attempt to reduce oil prices — which he said had to remain high to provide incentives for the production of new technologies.

AllAfrica