Oil prices will rise to US$$80 by early 2010, says Sanford Bernstein|
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INTERNATIONAL. Oil prices will rise to US$80 a barrel by early next year, while declining natural-gas production in the US is likely to drive up gas prices, reported Bloomberg, citing analysts at Sanford C. Bernstein & Co.
The supply of oil from countries not included in the Organization of Petroleum Exporting Countries is likely to decline later this year, analysts including Neil McMahon said in a note to investors on Firday.
“When this becomes apparent, coincident with recovering demand, the market should re-tighten and support higher crude prices,” the analysts said. Companies benefiting from higher oil and gas prices include Tullow Oil Plc, Cairn Energy Plc and BG Group Plc, they said.
Delays in liquid natural gas projects mean “dumping” of the fuel cooled to a liquid for transport by ship is unlikely, they said. European gas inventories have also been depressed by an ongoing dispute between Ukraine and Russia, they added.


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