US Department of Energy raises 2002 oil price forecast
The US Department of Energy has raised its 2002 oil price forecast due to rising tensions in the Middle East.
It warns warns in a new report that crude prices are likely to face a "broad range of uncertainty."
The department said that concerns over OPEC oil output and US economic growth are also likely to contribute to oil price pressures in the coming weeks.
"A stronger sentiment on the side of OPEC production discipline, a growing sense by the market that economic growth may accelerate more rapidly than previously thought", it said.
The forecasts released by the agency, however, were calculated before today's announcement by Saddam Hussein that Iraq is stopping its oil exports for 30 days.
The report noted that oil prices "moved up strongly in March," rising nearly $4.00 (€4.5) a barrel from the average February level for West Texas Intermediate to $24.50 (€28) a barrel.
The outlook also notes that the OPEC production cuts that were implemented in January "have resulted in reduced oil exports that are now becoming increasingly visible in the form of lower inventories, building support for rising world oil prices."
