http://www.bloomberg.com/apps/news?pid=20601087&sid=aD2mdsplVneY&refer=home Oct. 3 (Bloomberg) -- Oil analysts are raising their price estimates for next year in anticipation of increased demand that may outpace the development of new deposits.
Crude oil will average $64 a barrel in New York in 2007, according to the median forecast of 29 analysts surveyed by Bloomberg News last week. That's $2 higher than predicted at the end of the second quarter. Analysts failed to predict the rise in oil throughout a five-year rally during which prices tripled.
``We see a very tight market continuing into next year,'' said Kevin Norrish, a director of commodities research for Barclays Capital in London. Barclays expects oil next year to average $76.70 a barrel, the highest forecast in the survey.
``The recent fall in prices is due to short-term factors,'' he said in an interview. ``We're looking for fairly strong global growth, and we don't see capacity expanding by much.''
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