Oil price 'will stabilise at $90 next year'

15 June 2009

The price of crude oil could reach as much as $90 (£55) a barrel next year, bringing greater stability to the market, Algeria's oil minister has claimed.

Chakib Khelil told Algerian news agency APS that the recent price rally could be attributed to several factors, including a fall in global oil inventories and a rise in US fuel consumption.

However, he claimed that prices are unlikely to rise much further before the year is out, suggesting that prices will remain around $70 for the rest of 2009 before picking up again next year.

Mr Khelil said: "The oil market will stabilise when the price of a barrel is at $90. This level should be reached between the middle and the end of 2010."

This may prompt home heating oil customers to stock up on supplies of the domestic fuel in the coming months in order to avoid any potential rise in prices next year.

Values fell slightly on Friday as US crude dropped 64 cents to settle at $72.04 a barrel. London Brent crude settled 87 cents lower at $70.92.

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