Azerbaijan, Baku, Feb. 23 / Trend A.Badalova /
The analysts at the U.S. investment bank Morgan Stanley predict Brent price at $105 per barrel for 2012 compared to the previously forecasted $100 per barrel.
According to the analysts' report, the oil prices forecasts were slightly revised up on the concerns over the supply risks. However, total analysts' forecasts remain biased to the downside.
"Geopolitical tensions have seemingly increased. This is raising the crude risk premium and keeping crude bid despite bearish fundamentals," analysts said.
Analysts' base case is that the tensions around Middle East region persist, but that there is no conflict with Iran.
Earlier this week analysts at the other major U.S. bank JP Morgan downgrade the forecasts on the world oil prices for 2012 and 2012 on the supply risks in key producing countries.
According to the news forecasts, Brent average price will amount to $118 per barrel in 2012 and $125 per barrel in 2013 compared to $112 and $121 per barrels accordingly.
Following the auction on February 22, the price on Brent futures for April increased by $1.23 a barrel up to $122.89 per barrel. The cost of WTI futures for April on the New York Mercantile Exchange increased by $0.03 to $106.28 per barrel.