Oil prices may cool in 2007 after record year: analysts

LONDON (AFP) – Crude oil prices could head lower in 2007 from current levels of about 60 dollars per barrel, as global production catches up with demand and geopolitical risks lessen, experts say.

Despite hitting record highs in July, oil futures in New York ended the year about 1.5 percent lower than at the beginning of 2006, with futures in London up just 2.0 percent.

“This year, the main story has been the political risks story,” Global Insight oil analyst Simon Wardell said.

In 2006, amid an already tight supply situation, concerns about geopolitical instability in producer regions pumped prices higher and led to the all-time highs above 78 dollars per barrel in July and August.

AFP