The investment banking arm of Barclays
We expect a sharp compression in the WTI-Brent spread as the year progresses, with the spread remaining prone to dislocation but normally tending toward a small WTI premium, Barclays said.
We believe that the impact of the Libyan situation for the oil market is likely to become prolonged, regardless of the military outcome. it added.
The 2012 forecasts were unchanged at $105 for both WTI and Brent as they already contained an allowance for an injection of a large degree of geopolitical movements, particularly in Iraq and Iran.
The 2015 forecasts of $137 WTI and $135 Brent also remained unchanged.
The brokerage also introduced a 2020 forecast of $185 for WTI and $184 for Brent. (Reporting by Soma Das in Bangalore; Editing by Lisa Shumaker)