World oil prices will tend to rise both in 2013 and 2014, according to the forecasts of analysts at the U.S. bank JP Morgan.
The analysts' monthly oil market report said that capacity additions are inadequate to contain upward price pressures through 2014, and the global oil inventories drawing by approximately 300,000 barrels per day (bpd) in both 2013 and 2014 will keep the market tight.
JP Morgan analysts project the average Brent price at $122.5 per barrel in 2014, a $7.5 per barrel increase over $115 per barrel in 2013.
Analysts believe that the anticipated economic recovery allows OPEC's large producers -- Saudi Arabia, the UAE, and Kuwait to maintain production near current levels.
Average price for WTI is projected at $115 per barrel in 2014.
Analysts left Brent and WTI forecasts for 2013 unchanged -- at $115 per barrel and $99 per barrel, respectively. They expect Brent to reach $120 per barrel by the fourth quarter of 2013 as the global economy picks up steam and the balance tightens.
Analysts expect the WTI-Brent spread to average $7.5 per barrel in 2014, trending toward $6 per barrel by the fourth quarter of 2014.
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