Commodity Price Debate for 2012
There has been much speculation and prediction coming out regarding the expectations of the 2012 commodities market. We recently posted an article that argued WTI and Brent Crude would be in much better shape than 2011. But, as with every argument, there are two sides. According toCanaccord Genuity contributor, John Gerdes, prices are estimated to be lowered than initially predicted.
' Mr. Gerdes said, “Regarding crude oil, we are lowering our West Texas Intermediate (WTI) forecast ~$5 to ~$91.50 in 2011, $7.50 to $85 in 2012 and $5 to $92.50 in 2013. The lower WTI forecast in 2012 reflects an increase in the projected Brent/WTI spread specific to next year due to delays in pipelines necessary to alleviate the interior North American supply glut. Our overall lower oil price forecast reflects lower economic growth in 2011/2012 than previously anticipated and is modestly amplified by lower developed world oil demand intensity.” '
Find additional research here: http://turnkeyoil.com/2011/10/24/commodity-price-debate-for-2012/