25 September 2009 13:19 [Source: ICIS news]
LONDON (ICIS news)--Goldman Sachs has kept its year-end forecast for WTI crude oil at $85/bbl on the back of the upside in demand being met by more supply, the US bank said in a commodities report on Friday.
The bank said there was a surprise increase in demand and supported this claim by noting that Chinese demand was moving above levels seen before the recession.
Despite this increase, however, the bank kept prices unchanged because of “upside surprises in supply”.
“While we are revising up our demand forecasts, we maintain our price forecasts as the higher demand has been met by stronger supply,” it said.
In addition to keeping its WTI price forecast for the end of the year at $85/bbl, the report noted an average 2010 price of $90/bbl and $95/bbl for the end of 2010.
Meanwhile, the oil markets were recovering some of the ground lost earlier in the week.
After falling more than $3/bbl the previous day, oil prices, supported by a stronger US dollar, were trading in positive territory.
By 11:15 GMT, November Brent was trading at $65.35/bbl, up $0.53/bbl for Thursday’s closing range while November WTI was trading at $66.23/tonne, up $0.34/bbl.
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