Oil prices 'to remain around $40' this year

19 January 2009

Iran's oil ministry has tipped crude oil prices to remain at around $40 (£27) a barrel in 2009.

US crude settled at $36.50 a barrel on Friday as prices continue to fall from the highs experienced in the summer of last year.

This comes as the effects of the global economic downturn constrain demand for oil across the world.

Reuters reports Iran's oil minister Gholamhossein Nozari as having said: "In the opinion of the oil ministry, taking into account predictions by various international institutes, the anticipated oil price in the year 2009 will be around $40."

Mr Nozari also revealed that non-Opec countries were failing to cooperate with the cartel's move to cut production in a bid to bring a stop to the sliding prices.

This could see supply continue to grow over the next 12 months, meaning oil prices are likely to remain low.

Home heating oil customers saw crude oil prices hit their lowest in three weeks last Thursday as US crude slipped to $35.40 a barrel, while London Brent closed at $44.53.

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