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Wed 2 Mar 2011 10:20 AM

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Credit Suisse sees oil prices falling on Saudi Arabia's supply

Global oil prices may decline to below $100 a barrel as Saudi Arabia releases supply from its reserves

Credit Suisse sees oil prices falling on Saudi Arabia's supply
ANALSYST VIEW: Global oil prices may decline to below $100 a barrel as Saudi Arabia releases supply from its reserves, Credit Suisse says (Getty Images)

Global oil prices will probably decline to below $100 a barrel as Saudi Arabia releases supply from its reserves and demand drops from elevated December levels, Credit Suisse Group said.

The rise in
prices is “manageable” and central banks are unlikely to raise interest
rates “on account of oil alone,” Andrew Garthwaite, an analyst at
Credit Suisse, wrote in a note dated on Wednesday.

Still, any rally driving
Brent crude 100 percent higher year-on-year to between $140 and $155 a
barrel may be a “trigger point” that has historically led to equities
“correcting” by 34 percent, he wrote.

Countries that
are significant energy importers and where energy accounts for a large
part of the consumer price index such as India, Thailand, the
Philippines, Czech Republic and Poland are among the potential losers,
according to the report.

Russia,
Colombia, Australia, Canada, Malaysia and Norway are potential winners
as they are net exporters of oil, the report said.

Peter Cooper 8 years ago

That's the same Credit Suisse that saw gold topping out at $400 in 2005! And what is worse they really believed it...