GLOBAL OIL PRICES TO RISE AS GLOBAL ECONOMY RECOVERS

KUALA LUMPUR, June 8 (Bernama) -- Prime Minister Najib Razak says global oil
prices are still expected to rise as the global economy recovers.

Although perhaps not at the dramatic pace recorded in 2007 and the first
half of 2008, he said demand for oil today appears likely to grow at a more
modest rate over the next five years compared to projections from only nine to
12 months ago.

"The development of higher cost reserves to satisfy rising demand remains
inevitable eventhough the relevant demand will emerge later and perhaps more
gradual than previously assumed," he said in his keynote address at the 14th
Asia Oil and Gas Conference here Monday.

Najib said the medium term outlook has also weakened besides immediate
downward pressure from the global business cycle.

"Global growth is not expected to recover any time soon to the rapid pace
achieved in years past as the financial crisis will have lasting effects on
credit and capital flows.

These trends and their consequences on the energy industry should be
familiar to most of us," he said.

Najib said global primary energy consumption is expected to grow by 1.6
percent per annum, leading to a 45 percent increase in energy consumption
between now and 2030.

In line with the expected shift of economic power to the East, the focus of
global demand will swing to developing countries especially China, he said.

Najib said the transportation and commercial sectors would have the highest
increase while industrial and residential energy consumption rises at a slower
pace.
-- BERNAMA