Analysts: Brent price to grow in second half of 2013

Business Materials 23 April 2013 18:41 (UTC +04:00)

Azerbaijan, Baku, April 23 / Trend A.Badalova /

The analysts of the JP Morgan bank of the United States forecasts Brent oil price to grow in the second half of 2013.

In their Global Commodities Research, obtained by Trend via e-mail, the analysts stressed that during two recent weeks prices of Brent oil have fallen by 20 dollars per barrel. However, they believe that this reduction has happened mainly due to seasonal factors, being exacerbated by structural changes.

According to the analysts' report, the structural factors that might explain the low oil prices include the resumed concern that the growth expectations in Europe will be disappointed.

The European demand continues to decrease, reflecting the decline trend observed in the region since 2006, the report saiys. In 2013, the oil demand in Europe is expected to decline by 200,000 barrels per day (bpd) comparably to a 550,000 bpd drop in 2012. Cumulatively, the European demand is 2.1 million bpd lower than its peak in 2006, the report says.

According to the latest forecasts of the analysts of JP Morgan bank, Brent oil price will comprise 120 dollars per barrel in the second half of this year. However, according to the analysts, in order to achieve this level, "economic growth will need to demonstrate resilience in the face of the headwinds that currently challenge it".

Following the auction on April 22, the price on Brent futures for June increased by $0.74 a barrel to $100.39 per barrel.

The cost of WTI May futures on the New York Mercantile Exchange increased by $0.75 to $88.76 per barrel in March.

Earlier Iranian Oil Minister Rostam Qasemi said that according to the agreement achieved during the 161st OPEC meeting in Vienna, when an oil price below 100 dollars per barrel is considered as a critical one.