Petrol prices to fall but IMF forecasts future hikes

The price of petrol is set to fall in the next two weeks despite a warning from the IMF that oil could double in price over the next decade.

Maxol chief executive Tom Noonan said he expected the price that consumers pay for diesel and petrol at the pumps to continue to fall.

The price of oil has been falling on the back of fears about the European debt crisis spiralling out of control and depressing the world economy. Oil fell below $94 (€73) a barrel in New York for the first time since December as the debt crisis worsened. Saudi oil minister, Ali al-Naimi said prices should fall further. Saudi Arabia is optimistic it will discover more oil and gas in the Red Sea and increase recovery rates, al-Naimi said, adding the country plans to boost the amount of crude it can extract from its biggest producing fields to 70% from 50%.