Oil price outlook

Despite oil prices staying tightly within range over the past year, Lianna Brinded finds out that most analysts see prices becoming more closely correlated to supply and demand fundamentals and edging higher, with $100/bbl expected for 2012

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