Friday, October 30th 2009
British analysts expect decrease in oil prices
Analysts of one of UK's leading consulting firms for economic research Capital Economics expect next fall in oil prices soon.
Oil prices on world markets continue to grow on the backdrop of expectations for reviving the global economy. Presently, the price remains well below the record level achieved in 2008.
"We continue to consider that prices will fall again in 2010 on the backdrop of frustration regarding the recovery of world economy," the British analysts said. Analysts expect global economic growth at 3.7 percent in 2010 and 3.2 percent in 2011.
Given the slight recovery in world oil demand, in 2010 the oil price (North Sea Brent) will fall to $50 per barrel, analysts said. In 2011, the average oil price will remain at the same level.
According to the U.S. Energy Information Administration (EIA), in the first half of 2009 the world oil demand fell by 3.2 million barrels per day. In this current quarter, the EIA expects first growth in demand for the last five quarters.
Analysts of Capital Economics expect the average price for Brent crude oil to be $ 70 dollars per barrel.