The average price of Norwegian crude oil will be an estimated NOK500 ($80) a barrel in 2009, according to Norway’s 2009 budget proposal, down from NOK585 a barrel in 2008, the oil ministry said Tuesday.

The figures are sharply higher than estimates given in the revised national budget for 2008 in May.

“There is a considerable uncertainty regarding the future price development. A reduction in economic growth worldwide combined with high oil prices have contributed to the slowing down of the demand growth for oil this year,” the oil ministry said.

However, it said there “is still little spare capacity and uncertainty regarding the supply of oil from several major producing countries.”

Total 2008 oil output is estimated at 2.4 million barrels a day in 2008, down slightly from 2007, but gas output is expected to be 7% higher at 96 billion cubic meters compared with 2007.

In 2009, gas sales are seen rising to 106 billion cubic meters, with growth expected to continue “in the following years,” the oil ministry said.

Investment in the oil and gas sector are pegged at NOK137 billion 2009, up from NOK127 billion 2008.

Source: http://www.djnewswires.com/eu

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