Indonesian Minister expects global 2006 oil prices to fall
16-08-05 Oil prices in the global market are expected to fall by between $ 10-$ 12 per barrel next year from the current $ 65/bbl mark, as high oil prices are forecast to hurt global economic growth in 2006, Indonesia's Mines and Energy Minister Purnomo Yusgiantoro said.
"Global economic growth is expected to slow down next year," Purnomo told. However, he didn't specify the source of the forecast.
In 2006, oil demand is expected to increase by 1.5 mm bpd, which non-OPEC oil producers will be able to supply. The "fear factors", such as security problems and terrorism threats in Saudi Arabia, are expected to ease next year, Purnomo said.
Moreover, some countries have new refineries that are slated to begin operations next year, boosting the output of petroleum products, the former president of the Organization of Petroleum Exporting Countries said.
Lower oil prices globally will also drag Indonesia's crude oil price to between $ 40-$ 45/bbl next year, from $ 50-$ 55/bbl currently, Purnomo said.
Source: Dow Jones & Company, Inc.
