Analysts predict that oil prices in 2011 will be second-highest ever
Oil demand increasing twice as fast as supply may result in the second-highest price on record in 2011, some industry forecasters predict.
Sanford C. Bernstein & Co. said that crude will average $90/bbl this year. Natixis Bleichroeder Inc.expects $100/bbl, a 26% increase over 2010. Global oil consumption will increase 1.7% to a record 87.8 million bpd in 2011 while output will rise only 0.9%, according to the US Energy Department. According to the median estimate in Bloomberg surveys of economists, economic growth in China, while moderating, will still increase by 9%, three times the US growth rate and six times Europe’s. Crude futures on the NYMEX will average $87 in 2011, based on the median of 34 analyst estimates, which would be the highest since the record $99.75 reached in 2008 and 40% more than 2009.