06 May 2009 06:43 [Source: ICIS news]
SINGAPORE (ICIS news)--Crude futures may soften to $50/bbl (€37.5/bbl) towards the second half of the year on expectations that the global economy was likely to remain weak, said a chief commodity strategist at the Commonwealth Bank of Australia (CBA).
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“My expectation is that oil prices will probably remain choppy. Before the end of the current quarter, we will probably see it back to $50/bbl,” said CBA’s David Moore.
“The inventory situation remains quite comfortable but there is evidence that consumption in the
Encouraging manufacturing data out of
“[Economic] numbers became more positive in recent weeks so those are supportive in the near-term,”
But the global economy was dealing with the most gruelling recession to hit in decades and any meaningful gain in crude prices may not be possible due to lack of demand, the analyst said.
CBA expects oil prices to average $50/bbl this year mostly due to OPEC’s curbs on supply,
($1 = €0.75)
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