Oct. 10 (Bloomberg) -- Raymond James & Associates Inc. downgraded a forecast for West Texas intermediate oil by 19 percent in 2012 on the threat of a potential default of Greek bonds that could spread within Europe’s financial system.
The analysts lowered their 2012 forecasts for WTI oil to $85 a barrel from $105 and for Brent to $100 a barrel from $115. U.S. natural gas was lowered to $4 per thousand cubic feet from $4.25.
“The short-term outlook for the global economy and oil prices is as hazy as it’s been in nearly three years,” Pavel Molchanov, one of the analysts, said in the report. Default of Greek bonds “could easily set off even larger defaults,” he wrote.
Long-term prices remain “very healthy” and the forecast for $125 for both Brent and WTI in 2013 holds, according to the report.
--Editors: Charlotte Porter, Richard Stubbe
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