Crude oil prices may rise on concern that oil global demand will increase faster than supply, Bloomberg survey of analysts and strategists showed.
Twenty-eight of 63 respondents, or 44 per cent, said oil prices will climb. Twenty-five, or 40 per cent, said prices will fall and 10 forecast little change. Traders are almost evenly split on the market's direction for a second week. A week ago, 17 respondents said prices would rise and 17 forecast a decline.
World oil use may gain by 1.73 million barrels a day to 83.78 million barrels this year, according to a February 16 report from the OPEC. Last week the International Energy Agency and the US Energy Department raised their demand forecasts. Analysts who expected prices to fall cited rising US inventories.
Crude oil for March delivery rose $1.19, or 2.5 per cent, to $48.35 a barrel on the NYMEX this week. Prices are 36 per cent higher than a year ago. Fourteen of the past 20 surveys correctly predicted the market's direction.
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Crude Will Reach Record Again: Survey
Crude oil prices may rise on concern that oil global demand will increase faster than supply