Light crude oil prices to average nearly $73 a barrel in 2010

US light crude oil is expected to average nearly $73 a barrel in 2010, a Reuters poll showed on Tuesday, as oil demand improves, albeit at a sluggish pace. Although the poll of more than 30 analysts showed a higher consensus forecast for a fourth consecutive month, many of those polled warned oil prices were likely to remain volatile throughout the second half of 2009 and into 2010.

The poll predicted an average 2009 US oil price of $58.23, up from $56.66 in the last poll. Twelve analysts increased their forecasts for 2010, while just one reduced their estimate.

US light crude was trading around $68.70 on Tuesday, within the $60-$70 range it has been in for the last two months as investors remained cautious over signs of economic recovery.

Analysts in the poll said US crude would average $67.08 in fourth quarter 2009, down from $67.54 in the last poll, as doubts over the strength of economic improvement and improved fuel demand were expected to delay a sustained oil price rally.

"Fundamentals still look weak and we expect a downward correction to prices during the summer. Gasoline demand in the U.S. remains disappointing," said Christophe Barret, global oil analyst at Calyon.

Oil price gains in 2009 have tracked rallies on global stock markets as cautious confidence returns to the market but analysts have warned weak economic data and disappointing corporate results point to a correction.