Jun 03, 2012, 09.58 AM IST
Citigroup Global Markets lowered its 2013 Brent crude oil price forecast by 17.5% to USD 99 per barrel, saying accelerating shale oil production in the United States could reduce imports into the country.
The bank lowered its 2013 Brent price forecast to USD 99 from USD 120 and 2012 price forecast to USD 115 from USD 125 per barrel.
It also cut its forecasts for the U.S. benchmark West Texas Intermediate (WTI) by USD 11 to USD 95 per barrel for 2012 and by USD 28 to USD 85 per barrel for 2013.
Recent data indicate a temporary stabilization of US oil demand, but its production is on course to rise by about 800,000 barrels a day in 2012, Citi said.
With US net imports likely to fall by almost one million barrels per day each year going forward, it is enough to point to lower world oil prices in the medium-term, the bank said.
Citi also lowered US natural gas price forecast by 10 cents to USD 2.4 per million British thermal units (mmBtu) for 2012. It reiterated its call for gas to average USD 2.4 per mmBtu in Q2'12 and USD 3.6 per mmBtu in 2013.
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