Crude prices may go over $115 per barrel: Industry lobby

September 24th, 2008 - 6:51 pm ICT by IANS  

New Delhi, Sep 24 (IANS) Crude price, currently hovering around $107 a barrel, will cross $115 in the latter part of the current fiscal, according to an estimate by an industry lobby. In a report released Wednesday, the Associated Chambers of Commerce and Industry of India (Assocham) said the slowdown in the US economy has begun to affect other economies, especially developing ones, in terms of restricting their industrial activity because of increasing energy prices.

“In the near-term, crude oil prices will ease to around $90 per barrel as in the short term, the US slowdown and its repercussions on developing economies will dampen speculations, which in the recent past caused crude oil prices going over $147 a barrel,” Assocham president Sajjan Jindal said in a statement.

The chambers, however, expects the market to be volatile in the near term, pushing up prices to around between $115-118 per barrel.

Jindal said the current average price for the year, until Sep 20, is $115 per barrel.

Oil ministries of the Organisation of Petroleum Exporting Countries (OPEC) recently decided to trim production by more than 5,00,000 barrels day to avoid turbulence in crude market.

Assocham said the Manmohan Singh government should prepare a strategy to establish a stable energy scenario in India, arguing that oil price parameters are sensitive to macroeconomic policies.

This is essential for achieving durable economic growth and price stability and prudent monetary policy, the chamber said.

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