Oil price outlook

Back to basics

Oil rig

Oil prices, which have remained largely between the $75-85 per barrel (/bbl) range since October 2009 until October this year, are set to edge higher in 2011 with an eventual breakout to around $100/bbl in 2012, as concerns over the economic recovery wane and prices return to tracking supply and demand fundamentals, say analysts.

Prices have shifted from lows of $68/bbl to highs of $86/bbl this year, the average oil price for 2010 has remained tightly range bound.

According to a survey of 14 oil