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British analysts expect Brent price to fall back below $100 a barrel

Oil&Gas Materials 26 November 2012 18:18 (UTC +04:00)

Azerbaijan, Baku, Nov. 26 / Trend A.Badalova /

Leading analysts of the British economic research and consulting company Capital Economics expect Brent price to fall back to below 100 dollars a barrel in 2013.

"We expect oil prices to drop back to $85 in 2013, but the picture may be clouded for a while yet by uncertainties in the Middle East," analysts said in their report.

Analysts stressed that the Middle East premium has typically stood between $5 to $20 per barrel since the Arab Spring began in earnest in early 2011.

Last week it has increased from less than $10 to more than $15.

Following the auction on November 23, the price on Brent futures for January increased by $0.83 to $111.38 per barrel. The cost of WTI futures for January in the New York Mercantile Exchange decreased by $0.9 and stood at $88.28 per barrel.

Capital Economics analysts believe that even at current levels global oil prices are already unsustainably high.

"Oil prices are already at levels that represent a substantial drag on the global economy," analysts said.

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