Azerbaijan, Baku, Dec. 20 /Trend A.Badalova/
Oil prices will probably fall much further in the light of expectations on high global demand level, leading analysts of the British economic research and consulting company Capital Economics believe.
"While we think OPEC's decision will make no real difference on the ground, the bigger picture is that the latest demand forecasts from both OPEC and the IEA (International Energy Agency) still look too high and that oil prices have further to fall.
Capital Economics' analysts expect the price of Brent crude to drop back to around $85 per barrel by the end of 2012.
By the end of 2011 analysts expect average Brent price at $100 per barrel.
According to the latest IEA's forecasts, global oil demand will increase by 0.7 million barrels per day to 89 million barrels per day in 2011, and by 1.3 million barrels per day to 90.3 million barrels per day in 2012.
OPEC expects global oil demand at 87.8 million barrels per day in 2011 and 88.87 million barrels per day in 2012.
Following the auction on December 19, the price on Brent futures for February increased by $0.29 a barrel up to $103.64 per barrel. The cost of WTI futures for January on the New York Mercantile Exchange rose by $0.35 up to $93.88 per barrel.