oil range 70-90

May 16 (Bloomberg) -- Oil, down 17 percent this month on concern the Greek debt crises will curtail energy demand, is likely to stay between $70 and $90 a barrel, the head of Credit Suisse’s European oil and gas group said.

“My expectation is that most people won’t change long-term price forecasts,” James Janoskey said in an interview in Doha, Qatar, today. “I haven’t sensed anybody panicking that oil is going to get back down to $30 or $40.”

Crude futures fell to a three-month closing low of $71.61 a barrel in New York May 14 as the Euro weakened and Deutsche Bank AG chief Executive Officer Josef Ackermann said Greece may not be able to repay its debts. Oil prices will average $80 a barrel this year and $87.25 in 2011, according the median of 40 analyst estimates compiled by Bloomberg.

Oil rose as high as $87.15 a barrel earlier this month from a low last year of $32.70 amid signs a pickup in world economic growth will increase energy demand and as the Organization of Petroleum Exporting Countries curtailed output.

“If oil gets down into the $50s and stays there for a while, I think there will be more pressure from OPEC to be more compliant,” Janoskey said.

Saudi Arabian Oil Minister Ali al-Naimi said last month that prices in the $70-to-$80 range are “as close to perfect as possible” and he hoped oil would remain in that range. King Abdullah has targeted $75 oil as a fair price for consumers and producers. Saudi Arabia is the world’s biggest exporter of crude.