Date:30/09/2004 URL: http://www.thehindubusinessline.com/2004/09/30/stories/2004093002940600.htm

Back `Oil prices at $50 not sustainable'

Our Bureau

New Delhi , Sept. 29

THE World Economic Forum today attributed the rather high $50-a-barrel oil price to stockpiling by various countries and indicated that prices would soon drop.

The price would come down to a more reasonable level since the $50-a-barrel level was not sustainable for any country, according to Mr Ged Davis, Managing Director, Centre for Strategic Insight, World Economic Forum, at a conference organised by the Confederation of Indian Industries.

"Nobody who imports energy will be happy at the $50 a barrel (price level). The challenge for policy makers is to handle the near-term shock strategically, keeping the long-term perspective in mind," Mr Davis said.