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Oil Producers, Consumers Say Prices Will Stay High for Years

By James Cordahi and Steve Voss

April 23 (Bloomberg) -- Oil producers and consumers said oil prices will stay high during the next few years before companies add crude output and refining capacity.

Crude oil will average $60 to $65 a barrel, OPEC President Edmund Daukoru told reporters in Doha, Qatar, where he's attending a meeting of ministers and company executives from producer and consumer nations.

``Even with the spare capacity plans currently in place, this will not keep oil prices from being volatile,'' European Union Energy Commissioner Andris Piebalgs said today, declining to give a range. That will last until 2010, said Piebalgs.

Oil prices have climbed 23 percent to more than $75 a barrel this year amid concern a political standoff with Iran may lead to armed conflict, possibly curbing exports from the world's second- largest holder of oil reserves. An insurgency in Nigeria, Africa's largest oil producer, has cut supplies by 25 percent.

The world's biggest oil producing nations, including Saudi Arabia, and consuming countries such as China, India and the U.S. are meeting in Qatar this weekend.

Energy ministers from the U.S. and Iranian governments are also attending the three-day International Energy Forum which opened in Doha yesterday. Mounting political tensions between the two countries concerning the Islamic nation's nuclear research helped push oil in New York to a record intraday price of $75.35 a barrel on April 21.

To contact the reporter responsible for this story: James Cordahi in Doha, Qatar, on at cherifcord@bloomberg.net

Last Updated: April 23, 2006 07:18 EDT