Oil prices may go down in 2008

“The most recent forecast is for the weather to be cooler into early January but later in the month to be warmer than normal”

Many energy experts are predicting that the price of oil will fall in 2008 from its current level of about $93 a barrel.

Behind the predictions: a slowing US economy and stronger production from both OPEC and non-OPEC sources. In addition, tensions with Iran seem to have eased somewhat, and the supply of oil from northern Iraq appears to be better. Increased production of ethanol and biodiesel will also help.

"Next year, we will probably be in a range of $80 to $85 a barrel," says Rick Mueller, an analyst with Energy Security Analysis of Wakefield, Mass. "And if the US goes into a recession, the price forecast will be lower." Read more