Oil prices might fall to US$90 a barrel in the fourth quarter before recovering to US$105 next year, Nordea Bank executives said.
"Higher fuel prices and the weaker [United States] economy will hamper demand for oil and drive prices lower before remaining high in the coming two years," said Thina Margrethe Saltvedt, global head of commodities research at the Stockholm-based bank.
"[In the] long term, oil is fundamentally determined by supply and demand, and prices will remain high as we expect Saudi Arabia will not be able to increase production as much as they have indicated."
Crude for delivery next month settled at US$115.46 barrel on Friday. London Brent crude dropped 15 US cents to $114.02 a barrel.
Crude flirted with US$119 earlier in the session as producers evacuated workers from rigs before the arrival of Gustav, forecast to be the largest hurricane in the Gulf of Mexico since Katrina.
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Crude seen at US$90 before rebounding
Bloomberg
Sep 01, 2008
Oil prices might fall to US$90 a barrel in the fourth quarter before recovering to US$105 next year, Nordea Bank executives said.
"Higher fuel prices and the weaker [United States] economy will hamper demand for oil and drive prices lower before remaining high in the coming two years," said Thina Margrethe Saltvedt, global head of commodities research at the Stockholm-based bank.
"[In the] long term, oil is fundamentally determined by supply and demand, and prices will remain high as we expect Saudi Arabia will not be able to increase production as much as they have indicated."
Crude for delivery next month settled at US$115.46 barrel on Friday. London Brent crude dropped 15 US cents to $114.02 a barrel.
Crude flirted with US$119 earlier in the session as producers evacuated workers from rigs before the arrival of Gustav, forecast to be the largest hurricane in the Gulf of Mexico since Katrina.
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