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IMF cuts base forecast on oil prices on Sat Jul 10, 2010 12:28 pm
littlekracker
IMF cuts base forecast on oil prices
Published on: July 09, 2010 at 15:55
WASHINGTON (Commodity Online) : The IMF on Thursday reduced the base forecast on oil prices to $75.3 per barrel in 2010 and $77.5 per barrel in 2011.
In its latest World Economic Outlook, the IMF said prices on numerous commodities fell due to shocks on financial markets in May and early June, partly due to expectations of lower global demand.
Earlier the IMF predicted prices at $80 per barrel this year and $83 next year.
"Later some prices recovered as concerns about the spill over effects of financial turmoil on the real economy weakened," the report said.
Many Western investment banks and companies lowered their forecasts on oil prices last month amid worries about the global economic situation.
One of the largest U.S. banks JP Morgan lowered its forecasts on U.S. WTI crude from $88 to $81.75 per barrel and on North Sea crude Brent from $88.6 to $82.25 per barrel.
Analysts predict WTI prices will reach $85 per barrel and Brent prices will hit $94 per barrel in the third and fourth quarters of 2010. They forecast the average price on WTI at $90 per barrel and on Brent $92 per barrel next year.
Analysts at the U.S. bank Goldman Sachs also lowered their WTI price forecasts from $96 to $87 per barrel in the third quarter.
The major reason was concerns about the economic situation in Europe and a possible economic slowdown in China. The price on Brent crude also decreased to $85.5 per barrel.
Published on: July 09, 2010 at 15:55
WASHINGTON (Commodity Online) : The IMF on Thursday reduced the base forecast on oil prices to $75.3 per barrel in 2010 and $77.5 per barrel in 2011.
In its latest World Economic Outlook, the IMF said prices on numerous commodities fell due to shocks on financial markets in May and early June, partly due to expectations of lower global demand.
Earlier the IMF predicted prices at $80 per barrel this year and $83 next year.
"Later some prices recovered as concerns about the spill over effects of financial turmoil on the real economy weakened," the report said.
Many Western investment banks and companies lowered their forecasts on oil prices last month amid worries about the global economic situation.
One of the largest U.S. banks JP Morgan lowered its forecasts on U.S. WTI crude from $88 to $81.75 per barrel and on North Sea crude Brent from $88.6 to $82.25 per barrel.
Analysts predict WTI prices will reach $85 per barrel and Brent prices will hit $94 per barrel in the third and fourth quarters of 2010. They forecast the average price on WTI at $90 per barrel and on Brent $92 per barrel next year.
Analysts at the U.S. bank Goldman Sachs also lowered their WTI price forecasts from $96 to $87 per barrel in the third quarter.
The major reason was concerns about the economic situation in Europe and a possible economic slowdown in China. The price on Brent crude also decreased to $85.5 per barrel.