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Experts don’t See Threats of High Oil Prices to World Economy

Oil&Gas Materials 22 October 2007 15:52
Experts don’t See Threats of High Oil Prices to World Economy

Azerbaijan, Baku /corr. Trend A.Badalova / The oil and gas analyst of Alfa Bank, Constantine Batunin, considers that the existing high oil prices will not damage the world economy. According to the Bank's forecasts, the average oil prices in the short-term outlook will total $85 per barrel.

"There are notes which in high level present threats to the world economy, but the macroeconomic indicators in the USA and other countries testify that the world economy is capable to overdo the existing oil prices," the analyst said.

The oil prices reached the new record level - $89 per barrel. The oil price in the New York Trade Exchange NYMEX reached $89.47 per barrel and the Brent oil in London Inter-Continental Exchange increased up to $84.6. The oil prices increased a result of the tension in the Turkish-Iraqi relations and inflation of dollar.

"Sooner or later the oil prices will reach $100 or $200per barrel. The matter is that when it will take place," Batunin said. According to the analyst, the oil prices will not amount to such figures by the end of the year.

According to the analyst of ATON Broker, Artema Konchina, yet there are not conditions causing fall in the oil prices. "The oil prices will be high, but the figures will not reach $100 per barrel," the analyst said.

"Currently two tendencies meeting each other are going on in the world - increase oil prices and rapid inflation. The increase in oil prices is explained variously: strike in Nigeria, disturbances in Bolivia, tension of the Turkish-Iraqi relations. However, the original source of price increase has always came from the USA," said the deputy editor-in-chief of Russian Kommersant newspaper, politician Azer Mursaliyev.

According to him, currently the increase in oil prices up to $100 per barrel is fully probable.

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