Oil Prices to Drop by Quarter by End of Year: British Economist
Azerbaijan, Baku, 9 June / corr. Trend A. Badalova/ The British consulting company on economic studies Capital Economics forecasts drop in the oil prices of Brent produced in the North Sea up to $100 a barrel from the current $136 a barrel by the end of the year.
"Overall, we are sticking to our view that rising spare capacity and a sustained recovery in the dollar will undermine oil prices in the second half of 2008," Julian Jessop, the senior international economist of Capital Economics said to Trend on 9 June.
Last week, the oil price exceeded $139 for a barrel. The key reasons necessitating the all time high rise are the weakening of dollar and tension that emerged in the Near East after the minister of transport of Israel announced that it is possible to fire rockets to the nuclear facilities of Iran if Tehran does not give up this nuclear plans.
According to economist, $11 jump in the price of a barrel of crude provides the clearest evidence yet that the oil market is increasingly detached from fundamentals.
The May futures on Brent oil increased by $10.15 up to $137.69 a barrel at the end of last week. The May futures on the American light oil increased by $10.75 reaching $138.54 a barrel.
The analysts of the company forecast consolidation of the American currency against euro by the end of 2008 up to 1.50. The dollar will increase up to 1.40 by the end of 2009.
According to the forecast of the analysts of the company, the oil prices will drop up to $95 a barrel by end of 2009.