JPMorgan Cuts Forecasts on 2010, 2011 New York Oil Prices as Demand Slows - Bloomberg

JPMorgan Chase & Co. lowered by 5.5 percent its forecast for New York oil prices this year on speculation a slowdown in global economies will limit crude’s potential to rise.

The bank cut to $77.25 a barrel its estimate for the average price of West Texas Intermediate crude on the New York Mercantile Exchange during the rest of 2010, from a forecast of $81.75 a barrel made last month, according to a monthly report e-mailed today. It lowered its forecast for 2011’s average price to $79.25 a barrel from $90.

“We see both lower prices and a tighter range ahead -- but with increased risks,” Lawrence Eagles, an analyst for the U.S. bank, wrote in the report. “Weaker economic growth, energy efficiency and Organization of Petroleum Exporting Countries intransigence provide downside risks.”