British analysts predict drop in oil prices in short and long-term perspectives

Azerbaijan, Baku, March. 5 / Trend A.Badalova /

Global oil prices will fall in the short and long-term perspectives amid the current weakening demand and fading Iranian concerns, leading analysts of the British economic research and consulting company Capital Economics believe.

"Indeed, this would not be dissimilar from what happened in 2011 as the global economy slowed and the worst fears over contagion from the Arab Spring to the major Gulf producers were confounded," analysts said in their report.

According to the analysts' forecasts, Brent price will fall to $85 per barrel by the end of 2012 and to $75 per barrel by the end of 2013.

In 2014 analysts predict Brent and WTI prices at $80 per barrel, in 2015 - at $85 pr barrel and in 2016 - at $90 per barrel.

Following the auction on March 2, the price on Brent futures for April decreased by $2.55 a barrel up to $123.65 per barrel. This drop in price was highest since early 2012. The cost of WTI futures for April on the New York Mercantile Exchange decreased by $2.14 to $106.7 per barrel.

Capital Economics' forecasts for oil prices (in $/bl)