Oil price between $60 to $90 is 'sensible'

29 July 2009

Crude oil prices are likely to remain within a range of $60 (£36.64) to $90 a barrel as the market gradually begins to recover from the effects of the recession, it has been claimed.

Tony Hayward, chief executive of energy giant BP, said there is little sign of any increase in demand for the fuel, even though the economic crisis appears to be easing.

He suggested oil prices will continue to experience short-term volatility as supply and demand begin to come back into balance, but warned any rebound will be "long and drawn out".

Mr Hayward added $60 to $90 is probably a "sensible" level given the current market fundamentals.

"I suppose in the near term you would expect us to be closer to the bottom end of that range," he added.

Oil prices are currently trading at around $67 a barrel after a drop in US consumer confidence brought a halt to recent economic optimism on Tuesday.

US crude fell $1.15 to close at $67.23, while London Brent crude settled down 93 cents at $69.88.

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