BNP Paribas SA has cut its forecast for oil prices in 2013. According to the banks’ analysts, crude oil will be cheaper in the short run. However, in late 2013, oil prices will start rallying amid monetary stimuli implemented by central banks worldwide.
The experts assume that the average price of Brent oil will be $108/b instead of $115/b. At the same time, WTI oil will cost $95/b on average instead of $100/b.
After Q2 2013, the price of Brent oil is expected to consolidate above $100/b as oil consumers’ hedging will support oil prices.
The chart below, courtesy of , reflects the current state of affairs in the market of WTI oil:
