Analysts expect considerable increase in oil prices in U.S.

Azerbaijan, Baku, Dec. 12 / corr Trend A.Badalova /

World oil prices dropped to their lowest point over the past two years. Major factors causing such fall in this week were the consolidation of the US dollar and data on increase of US reserves of oil and products.

As a result of trading session on Dec. 10 at the NYMEX the January futures contract on WTI fell by $0.13 to $70.54 per barrel. January futures price of Brent dropped at the London Exchange fell by $0.53 to $71.86 per barrel.

Analysts of huge banks, nevertheless, expect considerable increase in oil prices in mid-term perspective. They predict the prices to exceed $100 per barrel in 2012.

JPMorgan forecasts average future price of WTI at $78.25 per barrel in 2010, $90 per barrel in в 2011, $105 per barrel in  2012. In 2013 the bank expects the prices rise to $120 per barrel. The bank forecasts Brent oil prices at $62.42 per barrel as a result of 2009 and $70 per barrel in 2010.

Morgan Stanley expects increase in price of American light oil to $105 per barrel in 2012 due to rehabilitation of world oil demand.

US Goldman Sachs also expects rise in oil prices in the near future. According to the bank's forecasts, prices will hit $90 per barrel in 2010 and $110 per barrel in 2011 on the backdrop of increase of demand for oil in developed countries such as China, India and Brasil), caused by high economic growth in these countries.

Meanwhile, US Merrill Lynch bank forecasts oil prices to reach $85 per barrel in 2010.

Deutsche Bank analysts remain pessimistic in their forecasts, expecting cut in process to $65 per barrel in 2010.

The Energy Information Administation (EIA) forecasts fall on spot price of WTI oil to $75 per barrel in February. By the end of 2010 the EIA forecasts increase in WTI prices to $82 per barrel. Average spot price of WTI will hit $76 per barrel in October-March, the EIA predicts.

W - WTI

B - Brent

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