U.S. Gov't Says Oil Prices to Drop Throughout Most of 08

The U.S. government expected on Thursday that average monthly crude oil prices will drop throughout most of 2008 due to supply increase and slowdown in economic growth.

"While oil markets are expected to remain tight and the average price of crude oil in 2008 is expected to be well above the average price of about 72 dollars per barrel seen in 2007," the U. S. Energy Information Administration said in its weekly statement.

But the high prices will drop in 2008, "reflecting increases in supply from both OPEC and non-OPEC countries and the impact of slowing economic growth on demand," said the EIA.

Crude oil prices soared to 100 U.S. dollars a barrel Wednesday for the first time and set a new record above 100 dollars a barrel Thursday.

In a report released by the end of last year, the EIA also predicted that the oil prices will remain high and volatile through 2008.