Citigroup boosted its estimate for average 2007 prices for West Texas Intermediate, a benchmark in the United States
CITIGROUP Inc, the world's largest financial services company, raised its forecast for crude oil prices, saying the Organization of Petroleum Exporting Countries may increasingly be able to keep prices from falling.
Citigroup boosted its estimate for average 2007 prices for West Texas Intermediate, a benchmark in the United States, to US$62.02 a barrel from US$59 yesterday. It also raised the 2008 prediction to US$60 from US$55 and the 2009 forecast to US$55 from US$50.
The US bank joins Credit Suisse Group and Merrill Lynch & Co, which have both raised their price estimates for crude oil within the last month, Bloomberg News reported. The US dollar touched a record low of US$1.3681 against the euro on April 27. Ten OPEC nations are partway through production cutbacks that have helped keep oil prices above US$60 a barrel for most of the year so far.
Crude oil futures have averaged US$60.57 a barrel so far this year on the New York Mercantile Exchange, down from an average of US$66.25 last year. Oil for July delivery traded at US$64.78 at 4:07pm yesterday in Singapore.
Citigroup also raised its long-term forecast for WTI to US$55 a barrel, from US$50.
