Crude oil predicted to average $73.50 per barrel in 2007

Despite announcements from Qatar and Algeria that both countries will support further OPEC production cuts in order to cut what the oil cartel sees as an oversupply on the market, crude oil prices were lower on Monday. Brent crude for January delivery was 23 cents lower to $58.76 per barrel, while West Texas Intermediate crude January contracts dropped 44 cents to $58.54 per barrel. According to Goldman Sachs, the lower prices are an isolated phenomenon in the United States and other markets are already adjusting to the OPEC cuts. Meanwhile, Lehman Brothers has predicted that US crude oil prices will average $73.50 per barrel next year.