|
Asia executives looking to $90 plus 2010 crude oil prices
Published on January 7, 2010 by oilprices · No CommentsCold weather could send crude oil prices above $90 later in 2010, local Asia executives say as oil prices are trading up around $11 over the past week with WTI US Light oil now quoted in the $83 to $84 a barrel range, which is a 15 month peak.
“Prices are partly driven by speculation as the US dollar has weakened, encouraging hedge funds to switch to the oil market,” quoted Dr Anusorn Sangnimnuan, president of Bangchak Petroleum Plc. “Oil prices could possibly reach $85 a barrel this time but that price should not be sustained because it remains uncertain that real demand is growing.”
Global oil demand is projected to grow by 1.5 million barrels per day this year from 84.5 million barrels consumed in 2009, in line with world economic growth of 3%. OPEC has maintained its output at 26.6 million barrels per day as the oil cartel does not want prices to be so high that they disrupt an economic recovery, he said.
“Oil prices could top $90 in the latter half but are unlikely to break $100 a barrel this year,” said Dr Anusorn. Thai Oil, the country’s largest oil refiner, also forecasts oil prices will briefly touch $90 a barrel before falling to an average of $80 to $85 in the first half.
“Signs of the global economic recovery are clearly visible as the US unemployment rate keeps falling. Thus, oil demand is expected to rise,” said chief executive Surong Bulakul.
According to Thai Oil, US crude inventories fell 1.5 million barrels as of Dec 25 as refineries ramped up production. Diesel stocks fell 2 million barrels as cold weather lifted demand. Updated US inventory data were due late yesterday with the expectation of further decline.