Oil prices to remain high but below 2006 records

The record oil prices of 2006 are not expected to be repeated in 2007 but they will be high enough to fill the coffers of the oil companies and draw the ire of motorists.

Oil prices eclipsed the highs of 2005 and came close to hitting $US80 a barrel in 2006, peaking at a record $US79.45.

Tensions in the Middle East – a key oil producing region – continuing supply concerns and an expected devastating hurricane season in the US all played their part.

While the hurricanes failed to materialise this year, the effects of Hurricane Katrina, which devastated the Gulf of Mexico 12 months earlier, was enough for the market to factor in a premium in anticipation.

WA Business News (Australia)