NEW YORK (Commodity Online): Maintaining a bullish outlook on gold, Goldman Sachs reports that they expected WTI crude oil prices to average $112.5/bbl in 2012 and $126/bbl in 2013. Brent crude oil is expected to be around $130/bbl in 2013.
With the capacity of Seaway pipeline likely to be increased to 400,000 bpd, the Brent-WTI spread will narrow, the firm stated in the report.
"We continue to view the crude oil market as navigating between the currently tight physical oil markets and the threat that the European debt crisis could trigger a global economic recession in the near future, which would lead to a sharp drop in oil demand”
Crude oil outlook is increasingly turning bullish with tensions between the West and the Middle -East at new highs. The spat between Iran and US regarding its alleged nuclear weapon development is likely to remain in investor psyche and discourage traders to short the oil market.
