Barclays increases oil price estimate

28 February 2008

Investment bank Barclays Capital has increased its average oil price estimate for 2008.

It has priced US crude oil stocks at $97.70 (€6.61) a barrel for the year ahead, $10 more than its original predictions, Reuters reports.

Oil prices for Brent oil have also been increased to $96.40 a barrel.

These reassessments have followed yesterday's announcement that the price of oil per barrel has reached new highs of over $101.

The news source reports the bank as stating in a research note: "Global distillate markets look like raging bull markets, given the extent to which the incremental global demand barrel is dominated by distillates."

Increase for crude oil is increasing in non-Organisation of Petroleum Exporting Countries (OECD), while demand falls in OECD nations, Barclays noted.

Demand in China is increasing, the bank added, which follows predictions from Bloomberg last week that increased need for crude oil in China and India would create a "supply crunch".

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