Citi cuts 2013 Brent crude oil price f'cast to $99/barrel

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Citigroup Global Markets lowered its 2013 Brent crude oil price forecast by 17.5 per cent to $99 per barrel, saying accelerating shale oil production in the United States could reduce imports into the country.

The bank lowered its 2013 Brent price forecast to $99 from $120 and 2012 price forecast to $115 from $125 per barrel.

It also cut its forecasts for the U.S. benchmark West Texas Intermediate (WTI) by $11 to $95 per barrel for 2012 and by $28 to $85 per barrel for 2013.

Recent data indicate a temporary stabilisation of U.S. oil demand, but its production is on course to rise by about 800,000 barrels a day in 2012, Citi said.

With U.S. net imports likely to fall by almost one million barrels per day each year going forward, it is enough to point to lower world oil prices in the medium-term, the bank said.

Citi also lowered U.S. natural gas price forecast by 10 cents to $2.4 per million British thermal units (mmBtu) for 2012. It reiterated its call for gas to average $2.4 per mmBtu in Q2'12 and $3.6 per mmBtu in 2013.