NEW YORK - UBS cut its forecast for 2009 U.S. oil prices by $15 to $105 a barrel due to weaker fundamentals and financial outflows, UBS economist Jan Stuart said in a note released on Monday.
"A sharp turn in fundamentals this summer, combined with several waves of financial outflows, have broken momentum decisively," the research note said.
"We still expect prices to rise this winter, but from a lower level to a lower high. What's more, macro risks are growing, seemingly by the day."
U.S. oil prices have tumbled from record highs above $147 a barrel in July as high fuel prices and the economic crisis cut demand in the United States and other large consumer nations.
"We reduced oil demand growth estimates for this year to 0.6 percent. Next year, we see oil demand eroding in OECD Europe and OECD Asia Pacific and growth slowing down in emerging markets," UBS said.
"Global growth should still reach 1 percent only because oil demand should fall less dramatically in the U.S."
Additional pressure on oil prices has come as investors -- who flocked to commodities this year as a hedge against inflation and the weak dollar -- seek safer havens.
"A sharp turn in fundamentals this summer, combined with several waves of financial outflows, have broken momentum decisively," the research note said.
"We still expect prices to rise this winter, but from a lower level to a lower high. What's more, macro risks are growing, seemingly by the day."
U.S. oil prices have tumbled from record highs above $147 a barrel in July as high fuel prices and the economic crisis cut demand in the United States and other large consumer nations.
"We reduced oil demand growth estimates for this year to 0.6 percent. Next year, we see oil demand eroding in OECD Europe and OECD Asia Pacific and growth slowing down in emerging markets," UBS said.
"Global growth should still reach 1 percent only because oil demand should fall less dramatically in the U.S."
Additional pressure on oil prices has come as investors -- who flocked to commodities this year as a hedge against inflation and the weak dollar -- seek safer havens.
