GENEVA, Nov. 9 (Xinhua) -- Switzerland has not yet reached its pain threshold in terms of oil prices even though they are hovering just below the level of 100 U.S. dollar per barrel, the Swissinfo website reported on Friday.
U.S. crude for December delivery stood at 96.23 U.S. dollars a barrel on Friday morning, reversing the previous day's 91-cent drop but down on its record high of 98.62 U.S. dollars earlier in the week.
Overall oil prices have risen by 60 percent this year.
With the current volatility, the 100 U.S. dollar level might be easily reached, according to Eliane Tanner, an analyst at Credit Suisse.
"But we do not think that this is a sustainable level ... we rather think that the price will come down soon afterwards," Tanner told Swissinfo.
Rolf Hartl, director of Swiss Oil Association, which represents the oil business in Switzerland, also foresees the possibility of prices "climbing the 100 U.S.-dollar ladder."
"The demand is still increasing even with such high oil prices, but the offer is quite limited due to the production policies of the oil countries, especially the OPEC counties," Hartl told Swissinfo.
As for the effect on Switzerland, Hartl said that the situation had dramatically changed since the 1970s, when the country was hitby two oil crises.
"Our economy can bear these high oil process because the oil and energy prices make up only around 4 percent of Swiss household expenses. This figure was significantly higher in the 1970s. We are now not so dependent on the oil price," said Hartl.
Swiss consumers also seem to be weathering higher petrol charges. Hartl said over the past few years petrol and diesel consumption had actually increased by 1 percent despite higher prices at filling stations.
"In Switzerland this pain threshold has not been reached yet," he said.
Both Tanner and Hartl do not expect the high prices to continue indefinitely, with Hartl predicting a "massive reversal" in the medium term. However, Credit Suisse believes that the market could tighten again in late 2008.
U.S. crude for December delivery stood at 96.23 U.S. dollars a barrel on Friday morning, reversing the previous day's 91-cent drop but down on its record high of 98.62 U.S. dollars earlier in the week.
Overall oil prices have risen by 60 percent this year.
With the current volatility, the 100 U.S. dollar level might be easily reached, according to Eliane Tanner, an analyst at Credit Suisse.
"But we do not think that this is a sustainable level ... we rather think that the price will come down soon afterwards," Tanner told Swissinfo.
Rolf Hartl, director of Swiss Oil Association, which represents the oil business in Switzerland, also foresees the possibility of prices "climbing the 100 U.S.-dollar ladder."
"The demand is still increasing even with such high oil prices, but the offer is quite limited due to the production policies of the oil countries, especially the OPEC counties," Hartl told Swissinfo.
As for the effect on Switzerland, Hartl said that the situation had dramatically changed since the 1970s, when the country was hitby two oil crises.
"Our economy can bear these high oil process because the oil and energy prices make up only around 4 percent of Swiss household expenses. This figure was significantly higher in the 1970s. We are now not so dependent on the oil price," said Hartl.
Swiss consumers also seem to be weathering higher petrol charges. Hartl said over the past few years petrol and diesel consumption had actually increased by 1 percent despite higher prices at filling stations.
"In Switzerland this pain threshold has not been reached yet," he said.
Both Tanner and Hartl do not expect the high prices to continue indefinitely, with Hartl predicting a "massive reversal" in the medium term. However, Credit Suisse believes that the market could tighten again in late 2008.
