Romanian property purchasing power 'under pressure'

24 April 2009

The price of crude oil will average about $56 (£38) a barrel during 2009 as the market gradually begins to recover from the effects of the economic downturn, according to the latest predictions.

London Brent crude prices have stood at an average of $46.87 a barrel so far this year after plunging from highs of close to $150 a barrel last July due to falling demand for energy.

Analysts at the Royal Bank of Scotland (RBS) said on Thursday that the situation is likely to improve in the coming months, though the bank opted to revise down its forecasts for 2009, Reuters reports.

RBS stated: "Opec's production restraint will create a tighter market, which we believe will progressively lift oil prices this year."

However, it added that the rate of recovery will be "somewhat slower than previously assumed", with prices expected to average $56.10 a barrel in 2009, down from an earlier forecast of $80.

Home heating oil customers saw crude oil prices rise for a second consecutive day on Thursday, with London Brent climbing 30 cents to settle at just over $50 a barrel.

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