The world may have to get used to an average oil price settling closer to the $80 mark, once prices settle after the past year's wild fluctuations, UK-based consulting company Deloitte said today.

Just as oil at last year’s peak of $147 looked excessive, so oil at last year’s low of $34 looked unlikely to last, Deloitte chief economist Ian Stewart said in an internal company briefing. “Yet the factors which drove up the oil price last year are still in place. Supply is constrained by underinvestment and a shortage of skilled workers.”

Despite much higher oil prices the International Energy Agency reckons investment in the oil sector will fall by 15% to 20% this year...

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