Citing the ongoing weak economies in the West, BNP Paribas cuts its oil price estimate to $80 a barrel, down from its prior projection of $82 a barrel for 2010.
Paribas also cut its 2011 oil price target from $89 a barrel to $86 a barrel.
With oil settling at $76.80 a barrel, and nothing out there to suggest economics in the West will improve any time soon, the $80 a barrel downward revisement for 2010 may even be optimistic.
An ongoing contango situation suggests to Paribas that oil will probably be stored on tankers rather than brought to market.
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