Petroplus Chairman Expects Oil Price Near $115 in Coming Months

By Nicholas Larkin

Aug. 7 (Bloomberg) -- Oil may trade near $115 a barrel in coming months as demand slows and supply increases, according to Thomas D. O'Malley, chairman of Petroplus Holdings AG, Europe's biggest independent refiner by capacity.

Crude prices will settle around that level, plus or minus $10, over the next two to three months, O'Malley said today in the Swiss company's second-quarter earnings statement.

``High crude oil prices and extreme volatility are causing demand destruction, primarily in the U.S. If we get a period of stability around these numbers, demand destruction will be limited,'' he said.

Crude oil traded in New York was at $119.03 a barrel, up 0.4 percent, at 7:47 a.m. U.K. time today.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net