ADB warns days of cheap oil are over
Wednesday, 17 September 2008
MANILA, Sept 16 (AFP): As crude oil prices fell overnight the Asian Development Bank warned regional governments today not to become complacent, saying the days of cheap oil were over.
Oil prices have fallen more than a third in value from their record levels of above 147 dollars in July.
Despite that, the Manila-based bank said in its update to its 2008 Asian Development Outlook that high oil prices were here to stay along with periods where the price would be volatile.
It said it expected the world would have to adjust to the price of oil at 100 dollars or more a barrel.
"While there will be short-term fluctuations, the unmistakable long-run trend is prolonged periods of high real oil prices and pronounced price volatility," the ADB said.
Oil prices have fallen more than a third in value from their record levels of above 147 dollars in July.
Despite that, the Manila-based bank said in its update to its 2008 Asian Development Outlook that high oil prices were here to stay along with periods where the price would be volatile.
It said it expected the world would have to adjust to the price of oil at 100 dollars or more a barrel.
"While there will be short-term fluctuations, the unmistakable long-run trend is prolonged periods of high real oil prices and pronounced price volatility," the ADB said.