Bloomberg quoted UBS AG as saying that crude oil is expected to average USD 65 a barrel during the H2 of this year as the outlook for the global economy improves and on increased appetite for risk among investors.
Analysts from the bank said that UBS raised its forecast for West Texas Intermediate, the US benchmark crude variety from USD 55 per barrel. Oil for August delivery traded at USD 60.36 at 1:50 PM Sydney time on the New York Mercantile Exchange.
UBS analysts led by Melbourne based Gordon Ramsay said that “Greater risk appetite and some greater optimism concerning the future are likely to see prices tend towards the top half of a trading range of around USD 55 per barrels to USD 75 per barrel in the H2 of 2009.”
Oil reached a record USD 147.27 per barrel on July 11th 2008 before dropping to USD 32.40 on December 19th as the global recession curbed energy use. Prices are up 35% this year and reached an 8th month high of USD 73.38 on June 30th.
The analysts said that UBS also raised its 2010 forecast to USD 70 per barrel from USD 58. UBS said that oil prices will be supported by a weaker US dollar. A fall in the dollar spurs demand for commodities as a hedge against inflation.
(Sourced from http://www.steelguru.com/news/index/2009/07/15/MTAyMjMy/Oil_to_average_USD_65_in_H2_-_UBS.html)
Tuesday, July 14, 2009
Oil to average USD 65 in H2 - UBS
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