29 May 2006, 16:28  World Bank sees oil prices stabilising, then fall to 40 usd per barrel by 2010

World Bank sees oil prices stabilising, then fall to 40 usd per barrel by 2010 LISBON (AFX) - The price of oil is expected to stabilise, then slowly decline to level out at around 40 usd per barrel by 2010, according to World Bank economist Andrew Burns, quoted in the Monday edition of the Portuguese newspaper Publico. Burns said the bank sees an average price of 69 usd in 2006 and 59 usd in 2007, followed by a progressive reduction. He said high oil prices are a result of strong demand and weak supply, which he said will be offset by the development of new oil production capacity due to come on line in the next 3-6 years. He added that he sees demand growth decelerating.

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