Azerbaijan, Baku, Feb. 1 / Trend A.Badalova/
Leading analysts of the British economic research and consulting company Capital Economics expect oil prices to fall by the end of 2013 below $100 per barrel and to decrease further in 2014.
Analysts mentioned in the report that world oil prices have started 2013 on the same positive note as they ended 2012.
The improvements in global economic conditions, as well as the positive mood in financial markets, have already prompted analysts to revise their near-term oil price forecasts higher.
Nonetheless, analysts believe that the upside from current levels should be capped by demand constraints and ample supply. "The fundamentals are also likely to deteriorate again later in the year," analysts said.
Analysts expect oil prices to stay firm in the first half of 2013 as global sentiment remains strong.
However, according to the analysts' expectations, sentiment to weaken again in the second half of the year and the dollar to recover some ground, especially if the crisis in the euro-zone flares up again.
"Geopolitical tensions should eventually fade too. Over the longer term, booming energy supply from both conventional and new sources will also add to the downward pressure on prices," the report said.
Analysts predict Brent price to fall to $90 per barrel by the end 2014.
Following the auction on January 31, the price on Brent futures for March increased by $0.65 a barrel to $115.55 per barrel. The cost of WTI futures on the New York Mercantile Exchange decreased by $0.45 to $97.49 per barrel in March.