FBR Raises Crude Oil Price Outlook
Friedman, Billings, Ramsey raised its crude oil price outlook for 2008 to an average $115 per barrel from $90 per barrel, and to $110 per barrel next year from $85 per barrel.
“We are raising our crude oil price expectations to reflect near-term supply realities, but also near- to intermediate-term demand responses that may not have attracted as much attention as the spectacular crude prices of recent weeks,” said analyst Kevin Book.
Book says there will be challenges meeting fast-growing demand in emerging markets due to underinvestment and rapid decline in mature fields.
He also expects falling U.S. demand for gasoline and other petroleum products to continue through 2010.