Oil Price May Climb to $125/barrel in Q2 08 – British Expert

Oil&Gas Materials 22 April 2008 19:06 (UTC +04:00)

Azerbaijan, Baku, 22 April / Trend corr A. Badalova/ Weakening of American dollar in the world markets will promote rise in prices for Brent oil, which is produced in the North Sea, to $125/barrel in the Q2, Hugo Navarro, internatonal economist of British Capital Economics Ltd, one of the leading independent macro economic research consultancies in the world, said to Trend .

However, Capital Economics' economist said that such high price for oil will not remain at the same level for long time and by the end of 2008 the price for a barrel may drop by 1/3.

"As soon as dollar starts gaining its positions back and tensions in the oil market weakens, oil prices will be back to $85/barrel by the end of the year," Navarro said on 22 April.

"Capital Economics forecasted that by the end of 2008 the USD rate will rise to $1.50 per euro from current $1.5933 per euro," Navarro said.

On 22 April, the oil prices in the world markets hiked to a new record - $117/barrel. The cost of May futures for American light oil WTI at the New-York Stock Exchange NYMEХ climbed up by 0.79% to $117.48/barrel.

The price of June futures for Brent at the London's IСE increased by 0.51% to $114.43/barrel.

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