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IMF lowers forecast on oil prices

Oil&Gas Materials 9 July 2010 14:12 (UTC +04:00)
The International Monetary Fund (IMF) lowered the base forecast on oil prices to $75.3 per barrel in 2010 and $77.5 per barrel in 2011. Earlier the IMF predicted prices at $80 per barrel this year and $83 next year.
IMF lowers forecast on oil prices

Azerbaijan, Baku, July 9 / Trend A.Badalova /

The International Monetary Fund (IMF) lowered the base forecast on oil prices to $75.3 per barrel in 2010 and $77.5 per barrel in 2011. Earlier the IMF predicted prices at $80 per barrel this year and $83 next year.

The IMF World Economic Outlook reported that prices on numerous commodities fell due to shocks on financial markets in May and early June, partly due to expectations of lower global demand.

"Later some prices recovered as concerns about the spillover effects of financial turmoil on the real economy weakened," the report said.

As a result of trading Thursday, July8, WTI prices on August futures rose by $1.37 to $75.44 per barrel on the New York Mercantile Exchange. On the London Stock Exchange, Brent prices on August futures increased by $1.2 to $74.71 per barrel.

Many Western investment banks and companies lowered their forecasts on oil prices last month amid worries about the global economic situation.

One of the largest U.S. banks JP Morgan lowered its forecasts on U.S. WTI crude from $88 to $81.75 per barrel and on North Sea crude Brent from $88.6 to $82.25 per barrel. Analysts predict WTI prices will reach $85 per barrel and Brent prices will hit $94 per barrel in the third and fourth quarters of 2010. They forecast the average price on WTI at $90 per barrel and on Brent $92 per barrel next year.

Analysts at the U.S. bank Goldman Sachs also lowered their WTI price forecasts from $96 to $87 per barrel in the third quarter. The major reason was concerns about the economic situation in Europe and a possible economic slowdown in China. The price on Brent crude also decreased to $85.5 per barrel.

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