British analysts expect oil prices at $95 per barrel in 2012

Oil&Gas Materials 4 May 2012 17:53 (UTC +04:00)

Azerbaijan, Baku, May 4 / Trend A.Badalova /

World oil prices will further fall due to weaker global demand averaging $95 per barrel in 2012, leading analysts of the British economic research and consulting company Capital Economics believe.

Analysts belive that high oil prices create a risk for the global economy.

We expect Brent crude to finish the year at $95 per barrel from US$120 at present. However, if oil prices remain at their current levels they could cause significant economic damage," analysts said in their report.

Following the auction on May 3, the price on Brent futures for June decreased by $2.12 per barrel up to $116.08 per barrel. The cost of WTI futures for June on the New York Mercantile Exchange decreased by $2.68 to $102.54 per barrel.

Drop in prices was a result of the European Central Bank (ECB) head's statement about significant risks in European economy, as well as disappointing macroeconomic ststistics.

According to the forecasts of Capital Economics analysts, average price for Brent will amount to $85 per barrel.

Earlier this week, OPEC Secretary General Abdalla El-Badri said that global market feels no oil shortage, but today's oil price levels continue to be driven by excessive speculation.