Azerbaijan, Baku, Oct. 28 / Trend A.Badalova /
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.
Currently, Brent is traded within a $77 per barrel. As for trades on Oct. 26 price for the December contract for Brent fell by $1.66 to $77.26 per barrel at the London Stock Exchange.
The recent increase in oil prices was caused by a weakening of U.S. dollar. Thus, the partial restoration of the U.S. currency's positions will be a lowering factor for oil prices, the British analysts believe.
The position of the U.S. dollar continued to strengthen on international exchanges in the third consecutive day compared to the Asian currencies. Yesterday, the exchange rate of the U.S. dollar to yen was 92.08 yen compared to 92.19 yen the previous day. The exchange rate of the U.A dollar to the European currency was € 1.4886.
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