Azerbaijan, Baku, Dec. 28 / Trend A.Badalova /
World oil prices will amount to average $100 per barrel in 2011, or some over 20% increase from the level in 2010, the U.S. investment bank, Morgan Stanley forecasted.
Oil prices on world markets declined after reaching its maximum level in the last two years.
As a result of trading on Monday, December 27, February's future price for U.S. crude WTI crude fell by $0.51 to $91 per barrel on the New York Mercantile Exchange. On the London Stock Exchange, February's future price for the North Sea Brent rose by $0.08 to $93.85 dollars per barrel. The main reason for the increase in prices was China's decision to increase interest rates to stop inflation in the country.
Morgan Stanley analysts believe that oil prices (WTI) in the short term will continue to grow, reaching $105 per barrel in 2012.
"The potential rise in oil and global commodity prices is due to the strength in G3 economies. Our basic outlook assumes a gradual rise in commodity prices," the report reads.
At its last meeting in December, OPEC has left production quotas unchanged. The cartel regards the price of oil above $ 90 a barrel as quite acceptable. Qatar's Oil Minister, Abdullah bin Hamad al-Attiya, said earlier the rise in prices today links up with weather conditions. Nevertheless, according to Iraqi Oil Minister, Abdul Karim al-Luaibi, in the case of a sharp rise in fuel prices, the cartel may convene an extraordinary meeting.
To date, OPEC set oil production quotas at 24.84 million barrels per day.
The U.S. Energy Information Administration (EIA) expects oil production by OPEC to amount to 29.49 million barrels per day in the third quarter of 2010, and puts OPEC's oil supplies in the fourth quarter at 29.28 million barrels per day.