EIA sees U.S. oil over $85 per barrel through June
WASHINGTON, Jan 30 (Reuters) - U.S. crude oil prices are expected to stay above $85 a barrel, on a monthly basis, through June, even if OPEC keeps output close to current levels when it meets this week, the U.S. Energy Information Administration said on Wednesday.
“While prices have declined from their peak, crude oil prices do remain relatively high, based on historical levels, and EIA expects monthly average oil prices to remain above $85 per barrel over the first half of 2008, even if OPEC keeps production (if not targets) near current levels,” the agency said in its weekly review of the oil market.
Some ministers of the Organization of Petroleum Exporting Countries, speaking ahead of the group’s meeting on Friday, have said worries about a weaker U.S. economy and lower petroleum demand means additional oil supplies are not needed.
“When prices were close to $100 per barrel, many analysts expected that OPEC might consider increasing production targets,” the EIA said.
“However, with the recent softening of crude oil prices, this outcome is less likely, and some analysts are even raising the prospect that OPEC might reduce its production targets later in the year.”
U.S. Energy Secretary Sam Bodman said this week that OPEC needed to raise its output to rebuild global oil inventories, ease crude prices and help the U.S. economy. (Reporting by Tom Doggett; Editing by Walter Bagley)
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