World News
Forecast: Lower Oil Prices in 2013
Oil prices next year are likely to slip slightly lower but not crash, as supply grows faster than demand, according to a Reuters survey of analysts.
The poll predicts that North Sea Brent crude oil will average $108 per barrel in 2013, compared with $111.71 so far this year, and that Brent prices will fall again, down to an average of $105.90, in 2014.
"While geopolitical concerns in the Middle East still remain at the forefront, concerns about the United States going over the 'fiscal cliff' and the euro area potentially slipping back into recession could have more dire consequences for crude oil demand for the first half of 2013," Gain Capital Group analyst Chris Tevere said.
"With U.S. oil production reaching its highest levels in well over a decade, combined with this potential economic slowdown, it may continue to be a major headwind for oil prices."
The analysts predicted that demand will improve modestly, but supply growth will prevent prices from rising.
They said an oil price crash in unlikely, and, if it occurs, would probably be shortlived, since Saudi Arabia and other OPEC countries could tighten supplies to push prices up.
The U.S. Energy Administration predicted this month that Brent would average $104 per barrel in 2013.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 621.00 | 7.00 | 730.50 | 6.00 |
| Rotterdam | 566.50 | 2.50 | 734.00 | 3.50 |
| Houston | 589.50 | 1.50 | 762.50 | 8.00 |
| Fujairah | 621.00 | 5.50 | 871.50 | 15.00 |
| Global 20 Ports Average | 639.00 | 5.00 | 821.50 | 4.00 |
| Global 4 Ports Average | 599.50 | 4.00 | 774.50 | 6.50 |
| Global Average Bunker Price | 696.50 | 3.50 | 880.50 | 3.00 |
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