Average 2007 Crude Price to Be Higher: Citigroup

Citigroup boosted its estimate for average 2007 prices for West Texas Intermediate, a benchmark in the United States, to US$62.02 a barrel from US$59 yesterday. It also raised the 2008 prediction to US$60 from US$55 and the 2009 forecast to US$55 from US$50.

The US bank joins Credit Suisse Group and Merrill Lynch & Co, which have both raised their price estimates for crude oil within the last month, Bloomberg News reported. The US dollar touched a record low of US$1.3681 against the euro on April 27. Ten OPEC nations are partway through production cutbacks that have helped keep oil prices above US$60 a barrel for most of the year so far.

Crude oil futures have averaged US$60.57 a barrel so far this year on the New York Mercantile Exchange, down from an average of US$66.25 last year. Oil for July delivery traded at US$64.78 at 4:07pm yesterday in Singapore.

Citigroup also raised its long-term forecast for WTI to US$55 a barrel, from US$50. -Neftegaz.ru