Oil prices about $65 per barrel for rest of 2007
Regional, Economics, 4/23/2007

The Center for Global Energy Studies (CGES) today revised its oil price forecast for 2007 upwards for the fourth consecutive month, predicting that Dated Brent would average 65 dollars per barrel (dpb) for the rest of the year.

In its latest monthly report for April, CGES raised its forecast for the whole of 2007 to 63.6 dpb, up from 61.8 dpb last month and from 54.3 dpb it predicted in January.

Its new reference case, estimated Dated Brent would gradually rise from 64.4 dpb in the second quarter to 66.6 dpb in the final three months, was dependent upon OPEC acting as a virtual swing- producer in response to market demand for the rest of the year.

The London-based center suggested that crude rates would rise to an average of 70.7 dbp by the fourth quarter of 2007 if OPEC output was kept flat.

"If OPEC really wants the stable market it claims to seek, now is the time to raise output," it said, warning that the oil organization should no longer be concerned about prices falling but about avoiding another spike," it said.

The report further warned that if demand turns out to be much stronger that it predicted, the outlook is for 'even higher prices and the need for more OPEC oil becomes even more urgent'.

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