08 July 2008 19:12 [Source: ICIS news]
Those revisions represent a 4% upward change in the department’s oil price forecast and a nearly 8% increase in its natgas price prediction since the agency’s earlier short term energy outlook (STEO) just a month ago.
The department’s Energy Information Administration (EIA) noted that the spot price for the
“Global supply uncertainties, combined with significant demand growth in
Its new estimate of $127/bbl on average for WTI this year compares with the administration’s forecast of $122/bbl just 28 days ago.
“The oil market remains tight, evidenced by rising prices, low surplus production capacity and the concern that global supply growth may not keep pace with demand growth over the near term,” the EIA said.
In addition, even though
“Moreover, while the Saudi action adds supplies to the market, remaining available surplus production capacity during the third quarter is at the low level of about 1.2m bbl/day, all concentrated in Saudi Arabia,” the administration noted.
Even as global demand for crude is expected to grow by 900,000 bbl/day this year and by an additional 1.4m bbl/day in 2009, “supply losses in
“World oil consumption continues to grow despite seven consecutive years of rising prices,” the EIA said.
Noting that the Henry Hub spot price for natgas averaged $13.07/m Btu in June, $1.42 or 12% higher than the May average, the administration said that gas prices continue to be pressured by high crude costs, low import volumes for liquefied natural gas (LNG) and a widening year-over-year storage deficit.
($1 = €0.64)
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