[LONDON] UBS lowered its average oil price forecasts for this year and next, saying the steepness of the market selloff exceeded its expectations.
However, UBS said the selloff was not particularly surprising as there was little to anchor pricing in the short term. The bank expects the first half of 2015 to be oversupplied by 1.6 million barrels of oil per day.
The bank lowered its 2015 Brent crude oil forecast to US$52.50 per barrel from US$69.75 and its 2016 outlook to US$67.50 from US$80.
UBS also slashed its 2015 WTI forecast to US$49 per barrel from US$64.75 and lowered its 2016 WTI outlook to US$62.50 from US$75.