Crude oil futures in New York willaverage $92 to $96 a barrel in 2012 as slowing economic growthcurbs fuel demand, according to Again Capital.
Prices may slip from 2011��s record average of $95.11 as theeuro declines against the dollar amid the European debt crisisand uncertainty about the economic recovery, John Kilduff andMichael Fitzpatrick, Again Capital analysts based in New York,said in a Dec. 29 report distributed today.
��The austerity is going to be a problem for growth aroundthe world,�� Kilduff said in a telephone interview.
The strengthening of the dollar against the euro curbscommodities�� appeal as an alternative investment to U.S.currency.
Unrest in the Middle East may cause a supply disruptionthat could send prices to records above $150 a barrel,triggering a recession or depression, Kilduff and Fitzpatricksaid. The analysts cited the possibility of civil war in Iraqand Libya and the threatened closing of the Strait of Hormuz byIran.
Brent oil in London will average $100 to $105 a barrel thisyear, down from $110.91 a barrel in 2011, Kilduff said.
��If supply is suddenly shut in, the consequences could bedevastating,�� the analysts said in the report. ��Price spikesto upwards of and beyond the 2008 high near $150 have beendiscussed, which if sustained, even briefly, would push Europeand the U.S. over the cliff into recession, possiblydepression.��
Oil in 2011 reached its highest annual average price sincetrading began on the New York Mercantile Exchange in 1983.Futures for February delivery slipped 82 cents, or 0.8 percent,to $98.83 a barrel on Dec. 30.
No comments:
Post a Comment