Oil rally looks set to run and run

By Ikuko Kao

LONDON (Reuters) - Oil prices will rise for the foreseeable future, a Reuters poll found on Friday, marking the first time average forecasts have envisaged the extended rally has years to run.

Previous Reuters polls showed analysts overall predicted U.S. crude oil, viewed as the global price marker, would stop rising this year and fall in 2009-2010.

The June poll showed U.S. crude in 2008 would average $113.24 a barrel, up by about $6 from the last poll in late May. The average price would be $113.25 in 2009 and $115.59 in 2010.

The average price for oil last year was $72.30.

North Sea Brent, another major price marker, is expected to average $112.02 this year, compared with $106.12 in the last poll. It will dip slightly next year and rise again in 2010.

Oil prices have surged beyond many analysts' expectations this year to a record high above $142 on Friday, forcing them to revise price assumptions repeatedly.

Although high prices have made some consumers use less fuel, the oil market has carried on rising because of robust demand from emerging markets such as China and India and concerns over future supply.

A complex mix of inflation, interest rates and a weak dollar has also attracted a large inflow of investors' money to oil.