Crude-oil prices will dip to $40 per barrel

Last week crude-oil prices dipped below $67 a barrel on rising US gas supplies and a surprise letter from Iran's leader to President Bush proposing possible solutions to escalating tensions, sources said.

Recent political fears boosted the crude price to record levels in recent weeks and in July the price exceeded $78 mark and remained above $75 during the Lebanon war.

Many analysts continue to say that oil prices are likely to climb higher this summer - claiming crude-oil production is only barely keeping up with surging global demand.

However, international oil experts said that crude prices will continue to dramatically fall in the next 12 months to $40 a barrel.

Oil appears to be hitting new highs but not for long. We believe a major price decline is already in the works, they said.

The US government admits that crude oil inventories are at 7-year record high with 343 million barrels of oil stockpiled in the US alone.