Tuesday, January 4, 2011

OIL PRICE: Black Gold set to average USD90 per barrel in 2011

MARKET METRICS   Thu., Dec. 30, 2010
Crude OilOpec Basket90.22+0.14
($/bbl)ICE Brent93.09-1.05
Nymex Lt Swt89.84-1.28
ProductsNymex (¢/gal)
Heating Oil248.54-3.61
ICE ($/ton)
Gas Oil765.75-14.25
Natural Gas New York5.33+0.08
Spot PricesHenry, LA4.23+0.05
($/MMBtu) Katy, Texas4.17+0.02
AECO, Canada3.74+0.10

Bernstein, the research house whose forecast for the average 2010 crude oil price came within 1pc of the actual $79.60 a barrel, is predicting that oil will average $90 this year, an increase of 13pc.
Based on the median estimate of 34 industry analysts surveyed by Bloomberg, crude futures will average $87 a barrel on the New York Mercantile Exchange. This level would be the second highest recorded in a year after the $99.75 of 2008, and 40pc more than the $62.09 of 2009.
Oswald Clint, Bernstein's head oil analyst in London, said: "We expect OPEC to have to increase their production, causing a reduction in spare capacity, which to us is increasingly becoming a more important determinant of oil prices. Since China became a more important part of the demand pie, the spare-capacity factor has become more important."
The forecasts have been revealed as oil begins to flow through a new pipeline between Russia and China, linking the world's largest oil producer and biggest energy consumer for the first time.
"The operation of the China-Russia crude oil pipeline is the start of a new phase in China-Russia energy cooperation," Yao Wei, general manager of the Pipeline Branch of PetroChina, said.

Source: Telegraph

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