US crude oil predictions for 2010

Higher demand as the world economy improves will push US crude oil to average more than $73 a barrel in 2010, a Reuters poll showed on Tuesday, as analysts raised their consensus forecast for the fifth straight month.

The poll of more than 30 analysts predicted an average 2009 U.S. oil price of $59.28, up from $58.23 in the last poll. Eleven analysts increased their forecasts for 2010, while just one estimated lower.

Analysts in the poll said US crude would average $68.22 in the fourth quarter of 2009, up from $67.08 in the last poll, as hopes for the strength of economic improvement and improved fuel demand were expected to spur a sustained oil price rally.

"Oil prices remain well supported in the low $70s," said Costanza Jacazio at Barclays Capital.

"Oil stocks are at very high levels but improving demand amid continued supply tightness should accelerate the pace of erosion of the inventory overhang, lending support to prices," Jacazio said.

Oil prices in 2009 have run a parallel course with global stock market rallies and currency valuations, as risk appetite worked its way back into market activity following a credit crunch, financial crisis and eventual widespread recession.