Oil seen above $100 by 2011 on shortages: Bernstein

NEW YORK (Reuters) – Oil prices may rise above $100 a barrel by early 2011, as global demand rises and producers fail to boost supply, Bernstein Research forecast on Monday.

Oil prices in the near-term should remain at or below $75 a barrel, moving higher in 2010 as global demand grows, and into triple-digits by late 2010 or early 2011, as demand outpaces supply, Bernstein analysts said.

“We believe that the stage is set for a sustained commodities bull run,” Bernstein said in a note to clients.

“Demand will likely be better in late 2009/early 2010 than consensus estimates assume, and this combined with non-OPEC supply reductions should cause spare capacity to decline in 2010.”

Reuters