Western analysts forecast rise in oil price

Azerbaijan, Baku, Aug. 19 / Trend , A.Badalova/ 

Oil prices on world markets which dropped last week below $66 per barrel are rising again. As a result of trades on Aug. 18 at the New York Mercantile Exchange, cost of the September futures contract for WTI rose by $2.44 and was $69.19 per barrel. The official price of the October futures contract for Brent at the London Stock Exchange rose by $1.83 and was $72.37 per barrel. Price increases due to some signs of improving global economic situation.

Many analysts of the largest organizations and banks forecast that oil prices will continue to show growth.

Thus, the U.S. investment bank Morgan Stanley expects an average price of WTI will reach $85 per barrel in 2011, while this figure will be $65 per barrel in 2010 and $48 per barrel in 2009.

Another major U.S. bank Goldman Sachs also expects the rise in oil prices up to $85 per barrel, but believes that they will reach such a level in 2010.

Analysts of Merrill Lynch predicted the average price of WTI at $58.5 per barrel in 2009 and $75 per barrel in 2010. But the analysts predict the price of oil can reach $82 per barrel by the last quarter of 2010. 

One of the largest U.S. bank JPMorgan, however, predicts a moderate oil prices both in 2009 and 2010. According to forecasts, the average price for WTI in 2010 will be $67.5 per barrel. In 2009, analysts forecast the average price at $55.63 per barrel. The average price of Brent will stand at $55.5 per barrel in 2009 and $63 per barrel in 2010, the analysts forecast.

The U.S. State Energy Information Agency (EIA) expects the average price for WTI in the fourth quarter of 2009 at $70 per barrel. In general, the EIA forecasts an average price for this sort of oil will be $60 per barrel in 2009. On the backdrop of improving economic conditions, the EIA forecasts modest growth in the average WTI price to $72 per barrel in 2010.

W - WTI

B - Brent 

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