Oil prices will remain above $50 a barrel in 2006, barring significant changes to global demand and supply, the Centre for Global Energy Studies said in its monthly report published today.
The CGES said prices were kept high by continued demand growth, tight refining capacity and fears of supply disruptions.
'Unless both upstream and downstream capacity constraints ease, global economic growth slows dramatically, or tensions in oil producing countries ease, there is little prospect of oil prices falling far either this year or next,' it said.
Recent supply fears, heightened by production disruption at US refineries, pushed London Brent to a record $66.85 on August 15, while New York futures hit a historic high of $67.10 on August 12.
The CGES said high oil prices had begun to have an impact on the global economy and oil consumption.
Meanwhile, oil prices rose amid ongoing unrest in Ecuador, southern Iraq and Nigeria, while hurricanes remained a threat to installations in the Gulf of Mexico.
New York's main contract, light sweet crude for delivery in September, climbed 30 cents to $65.65 a barrel. In London, the price of Brent North Sea crude oil for delivery in October added 49 cents to $64.85. London trading halted for six hours early on Monday because of technical problems.
