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Deutsche Bank raises oil-price forecast

Deutsche Bank AG, Germany's biggest bank, raised its oil price forecasts for this year and next year on concern supply growth from producers in the Organization of Petroleum Exporting Countries (OPEC) and outside the group may fail to keep pace with demand.

Deutsche Bank expects crude oil futures on New York Mercantile Exchange to average US$54.56 a barrel this year, up 13 percent from a previous forecast of US$48.31, it said in a report on Friday. The third-quarter estimate was raised to US$60 from US$45 and the fourth-quarter prediction to US$55 from US$45.

It expects crude oil prices to average US$47.50 a barrel next year, up 28 percent from an earlier forecast of US$37. The revisions are the Deutsche Bank's third in the past year.

"There are signs of some slowing of demand," analysts including Adam Sieminski wrote in the report.

"Modest non-OPEC supply growth and modest OPEC capacity increases" mean producers are still struggling to keep up, he said.
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