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Analysts predict further drop in oil prices
- Middle East: Monday, December 29 - 2008 at 12:21
US investment bank Merrill Lynch forecasts oil prices to average $50 a barrel in 2009, as energy demand tumbles in the face of shrinking economic growth. Deutsche Bank predicts prices to average $47.50 in 2009, cutting its previous forecast of $60. Opec blamed speculators for soaring prices, arguing that they have inflated the market, while key consumer nations cited low oil supplies as the chief cause. After a rollercoaster year, oil prices have tumbled by about 57% since the start of 2008 when they traded at about $95 per barrel.
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