Market uncertain over oil price direction

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 o