Market uncertain over oil price direction

Analysts at investment banks are divided in their views over the average price of crude oil for the rest of 2009 and into 2010.

The more bearish views forecast $30 per barrel, with some estimating as low as $20 per barrel. More bullish outlooks are primarily based on expectations that prices will "normalise" in a higher price band. Many banks are taking a more moderate view for oil prices with predictions ranging between $55 and $65 per barrel for the rest of 2009.

"The single most important source of short-term volatility has been the divergence in views of long-term prices, because without a broadly agreed calibration