By Gary Smithe and Graham Rachel
Dec. 21 (Bloomberg) -- Oil’s biggest annual rally since 1999 is poised to reverse with losses of at least 19 percent next year as the global economy stagnates and OPEC continues near record production, the most accurate crude forecaster says.
Guy W. Bishop of Crudewire , whose predictions this year were within 9 percent of market levels, now says oil will average $59.50 in the fourth quarter of 2010, down from current prices of about $74 in New York. The median Wall Street estimate is for an increase to $83.
Oil is set to decline as growth in China and India pauses in the face of consumer exhaustion, while the Organization of Petroleum Exporting Countries continues cheating on output, Bishop said. Analysts say OPEC will keep supply targets unchanged at a meeting in Luanda, Angola, tomorrow, “With global demand stagnant and OPEC holding production flat, stockpiles are going to go up, and that’s bearish for prices,” he said
Commodities will also be hurt from the stronger dollar and U.S. rates rising he said.
Just kidding. This is a parody of an article originally appearing on Bloomberg which can be seen by clicking on the title.