Crude oil to remain in $50-100 range: Fitch

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Crude oil to remain in $50-100 range: FitchOil surges to near $109 on hurricane threatOil drops to USD 106.38 a barrelOil pauses at $109 on demand concerns

Global rating agency Fitch on Monday said it expects oil prices to remain in the range of USD 50-100 per barrel despite fall in prices in the last few weeks.

"Companies whose margins are under threat from high crude oil and gas prices need to be prepared for crude oil prices to remain in the range of USD 50-100/barrel," Fitch said in a report.

Crude oil contract for October closed at around USD 109 a barrel on Friday from its all-time high of USD 147 a barrel.

According to Fitch oil prices would continue to decline, particularly as the global economy slows. However, it does not anticipate that the price levels seen in 2004 and prior are likely to recur.

The report also noted that the oil and gas price environment over the last 18-24 months have generally benefited the oil and gas firms, as unprecedented high real wholesale prices mostly led to a significant increase in cash flows and margins.

However, some firms without significant upstream exploration and production (E&P) assets have, conversely, faced a significant margin squeeze.

The financial performance of companies like Indian Oil Corporation and Sinopec of China has suffered significantly over the last two years because governments, wanting to control inflation and maintain economic growth momentum, have not allowed the companies to fully pass through the higher costs of crude oil to customers.