Crude prices could reach $80 this year and merger and acquisitions are picking up, said executives of Norwegian oil companies DNO International ASA and Norwegian Energy Co. ASA “I don’t think oil prices will drop significantly,” DNO’s Chief Executive Officer Helge Eide said in an interview in Oslo today. Prices this year will probably range in the “$70s, perhaps up towards $80” a barrel. Oil fell 3.7 percent to $71.92 yesterday, the biggest drop since June 4 and the lowest settlement since Aug. 24. Prices today rebounded as a declining dollar and advancing equity markets tempered concern that U.S. fuel supplies are excessive.

The contract has declined 7.9 percent this year. The oil price is “going to be $70 to $80, in that range” this year, Norwegian Energy’s chief Scott Kerr said in an Oslo interview. “Part of the volatility is driven by U.S. numbers, and I think the more important ones are the Chinese and Indian numbers, and they’re continuing to grow and will continue to grow. Demand for oil -- not gas, but oil -- will be driven by those economies, because they’re very oil-intensive.”

The October contract rose as much as $1.28, or 1.8 percent, to $73.20 a barrel on the New York Mercantile Exchange today. It was at $73.01 at 2:59 p.m. London time. Brent crude for October settlement climbed as much as $1.61, or 2.2 percent, to $76.25 on the ICE Futures Europe Exchange in London. M&A Picks Up “If the oil companies hold back on their investments over time, then that could result in spikes similar to those we had in 2008,” Eide said. “But for now we think there’s a reasonable balance.” New York crude touched a record above $145 a barrel in July 2008 and slumped below $34 five months later. Mergers and acquisitions have increased in the oil industry since the financial crisis, without “reaching the levels one might have expected,” Eide said.

DNO has said it is looking to add to its portfolio in the Middle East and Africa, including Tunisia and Oman. “There are a lot of opportunities out there for those with a comfortable financial situation,” Eide said. Offshore Norway, the market for asset sales has improved in the past six months, said Kerr, whose company is known as Noreco. “European utilities are still quite active in that arena.” “We’ve always said that part of our plan would be to monetize discoveries, so if you look at our portfolio, we have a number of discoveries that are yet to start production, and we’re looking for opportunities in that arena,” Kerr said.