CIBC report says oil prices to stay under $85 until 2012
BonTradeCIBC World Markets reported Wednesday that world oil prices are unlikely to rise above $85 US over the medium term, or at least until 2012.
The CIBC forecast predicts crude oil prices will hover in a range of $80 per barrel for 2010, rising to $85 in 2011, held in check by a slower than expected pace of economic recovery in the US and Europe, said Peter Buchanan, CIBC’s chief commodities analyst.
“We’re saying oil prices are going to do something they don’t normally do, which is stay steady,” he said in an interview.
US Light oil prices, which have fallen more than $10 since the start of May in the biggest decline in 18 months lost 72 cents in trading on Wednesday to close at $75.65 on the NYMEX.
“The levels we’re seeing now in some sense is the best of both worlds,” Buchanan continued. “They’re high enough to keep oil production projects moving but not so high that it kills the economic recovery.”
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CIBC report says oil prices to stay under $85 until 2012
