2008 Forecast: Oil Prices Dip as Supply Rises, Economy Slows

$80-$85 a barrel would aid consumers
By Jim O'Neill,  Newser User
Posted Dec 26, 2007 8:28 AM CST
sign advertises gas prices at a station November 14, 2007 in Chicago, Illinois.    (Getty Images)
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(Newser) – A slowing US economy and rising oil production will lower the price of crude to between $80 and $85 a barrel in 2008, predicts the Christian Science Monitor. While still higher than the $71 average for 2007, it’s a drop from current prices near $93. Lower prices could ease inflation worries in the US, experts say.

OPEC production is expected to be up over the 2007 average, since Saudi Arabia  has been pumping an extra 400,000 barrels a day. A further downturn of the US economy could drive prices lower; a US slowdown in 1998 caused oil prices to plunge 50%.