Reuters citing Mr Jose Sergio Gabrielli CEO of Petrobras as saying that demand from emerging markets and financial flows will keep crude prices high and volatile at around USD 105 to USD 125 per barrel in 2012.

He said "Even though in Europe, Japan and the United States we have a reduction in consumption of oil products we have an increase in cponsumtpion in China, India, Brazil and other Latin American countries and Africa."

He added that "I think that the price is going to be between USD 105 and USD 125 during 2012."

Mr Gabrielli is due to step down next month and be succeeded by veteran engineer Maria das Gracas Foster.

Thanks to newly discovered reserves off Brazil's southern coast, the company hopes to more than double its worldwide output to 6.42 million barrels of oil equivalent a day by 2020, putting it among the world's top producers.

(Sourced from Reuters)