USA’s 3rd Largest Bank Raises Forecasts for World Oil Prices
Azerbaijan, Baku, 18 March / Trend corr A. Badalova/ USA's third largest bank JP Morgan raised its forecasts for the average world oil prices for 2008 by 17.5%. The price for American WTI oil will average $90.50/barrel in 2008, while previously it was forecasted as $76.50/barrel; the price for Brent Dated oil produced in the North Sea will average $88.50/barrel this year, while the previously forecasted price was $76/barrel.
According to the bank's forecast, in 2009, the average price for WTI oil will drop by $10.50/barrel to $80/barrel as compared to the price of 2008, JP Morgan Chase's Central Office told Trend on 18 March.
"The average price for Brent Dated will comprise $78/barrel in 2009," JP Morgan said.
After last week's uninterrupted increase, the oil prices reached a record as a result of the auction of 17 March. The price for Brent dropped by $4.45 to $101.75/barrel. The price of the deals with futures Light Sweet totalled dropped by 4.1% to $105.68/barrel.
Such a rapid drop in prices was caused by the news regarding JP Morgan Chase's purchase at an unexampled low price of its rival, investment company Bear Stearns Cos which was experiencing an acute shortage of liquidity due to its losses during the 'subprime' crisis.
The correspondent can be contacted at: [email protected]