U.S. analysts expect oil price growth by end of year

Azerbaijan, Baku, May 11 /Trend, A.Badalova/

Analysts of American JP Morgan Bank expect oil prices to exceed $90 per barrel by the end of the year on the backdrop of world demand improvement. According to forecasts of the analysts, published in report on commodity market, the average price of U.S. WTI crude in the fourth quarter will amounted to $93 per barrel, or $3 higher than the prices projected earlier.

Analysts project the world oil demand growth to total 1.7 million barrels per day this year, a large share of which will account for developing countries. Last week, world oil prices fell below $80 per barrel on the backdrop of fall in global demand for petroleum energy, which was caused by the financial problems in the Euro-zone. But this week, quotes began to grow slightly due to various EU measures to stabilize the situation in the region.  

As a result of trades on May 10 on the New York Mercantile Exchange the price of U.S. WTI crude June futures rose by $1.69 to $76.8 per barrel. The June futures for North Sea Brent crude on London Stock Exchange rose by $1.85 to $80.12 per barrel.

The sharp decline in oil prices caused fears that OPEC may reduce the volume of its production. However, JP Morgan analysts believe that OPEC countries in the short term will be passive in their actions to change the production quotas which now total 24.84 million barrels per day.

According to analysts of the bank, the price of North Sea Brent crude will remain higher than WTI prices because of the continuing pressure on contracts for the American oil because of the overabundance of supply in the region.

According to analysts, the average price of Brent by the end of the year will amount to $95 per barrel. As a result of this year, the analysts forecast the average price of WTI at $87.95 per barrel, the Brent - $88.6 per barrel. In 2011, according to analysts, the average price of WTI will increase to $90 per barrel, the Brent - to $92 per barrel.

JP Morgan forecasts on oil prices in 2010-2011 (in $/barrel.)