Oil prices could fall by 22% in 2004 as Iraqi output gathers pace

CRUDE oil prices, headed for their highest yearly average in two decades, may fall 22% in 2004 as Iraq recovers from the war and increases production, according to a survey of analysts by Bloomberg News.

Oil has averaged $31.03 a barrel on the New York Mercantile Exchange this year, the highest since 1983, when the contract began.

Prices are expected at $26.79 in the fourth quarter in New York and $25.34 in 2004, according to the average estimates of 20 banks, securities firms and consultants from Houston to Paris.