Energy Information Administration raised its estimate for world crude prices in 2010
Energy Information Administration said yesterday it raised its estimate for world crude prices in 2010 by about 20% to near $60 a barrel due to delays bringing new oil fields on line.
African producers like Angola and Nigeria and Latin American states like Brazil will be slower than initially projected in ramping up production from new projects, putting a squeeze on world supply, said Guy Caruso, administrator of the Energy Information Administration.
World crude oil prices are projected to average $57.47 a barrel in 2010 based on 2005 dollars, versus a year-ago estimate of $47.29 a barrel in 2004 dollars, he said.
?The front end of the curve is now much higher than we were thinking a year ago,? Caruso said. ?We were too ... optimistic of how fast the price would go down? due to new projects coming online,? Caruso said.
US crude oil futures have hovered around $60 a barrel in recent weeks, down from the record $78.40 hit in July.