The bank cut to $77.25 a barrel its estimate for the average price of West Texas Intermediate crude on the New York Mercantile Exchange during the rest of 2010, from a forecast of $81.75 a barrel made last month, according to a monthly report e-mailed today. It lowered its forecast for 2011's average price to $79.25 a barrel from $90.
I really think that the markets are drastically under estimating the needs and growth of India and China who are making massive investments in volatile oil markets just to meet this years demands... While I would personally like gas prices to drop, it does not seem probable.
The real question is:
Will the upcoming 'economic slowdown' bring lower oil prices or will higher oil prices bring the next 'economic slowdown'?
