Oil prices will average $85 a barrel in 2010, Barclays Capital
forecasts. Prices should range between $70-$100 a barrel next year. There will
be little potential for the oil price spike of '08 due to spare supply capacity
from OPEC, Kevin Norrish, managing director of commodity research told a press
conference for its 2010 Global Outlook.
And there is little downside to the
market, as a price below $70 a barrel is not sustainable for investment in the
oil industry, he said. Expectations for much higher oil prices next year are
also based on a recovery in the
US
economy, improved OECD demand for commodities and strong underlying oil demand
growth in
China
.