Oil prices ‘to stay at $65’

IRISH oil expert Paul J Harris of Bank of Ireland Global markets has said the outlook for oil in the months ahead was for prices to stay at $65 (€50.70) per barrel or higher.

The implications of that figure is petrol in Ireland will cost 107c-110c per litre, unless a dramatic improvement in oil supplies comes about, he said.

Mr Harris added that US stock data released on Wednesday showed rising petrol inventories that helped soothe market concerns over oil supplies.

Brent crude dipped to just below $69pb (€53.82) while US data also showed production costs were rising thanks to dearer fuel costs.

And while some moves are taking place to bring about peace in Nigeria, Mr Harris thinks the overall outlook is for continuing political instability.

“Consequently oil prices are likely to remain vulnerable to upward moves and are unlikely to fall much below $65pb for the foreseeable future,” he said.

Mr Harris also said increasing global demand for distillates has outpaced new refining capacity, which has been exacerbated by lack of investment in capital-intensive plant, and that the growing age of refineries will also continue to cause extended off-line periods as maintenance periods become more pressing.