STILL WAY TOO HIGH:

Merrill cuts 2007 oil price forecast (TAVIA GRANT, 12/11/06, Globe and Mail)

The investment bank now sees oil at $60 (U.S.) a barrel, down from its previous forecast of $65 a barrel, and crude rising to $62 a barrel in 2008, from its earlier prediction of just $50 a barrel. Merrill also boosted its forecast for natural gas in 2007 and 2008.