Oil prices are poised to remain low next year, Deutsche Bank said on Wednesday, as it cut its 2015 outlook on both crude WTI and Brent oil sharply. For WTI crude oil, the bank now expects an average price of $67.50 a barrel, down 16% from the previous forecast of $80.50. For Brent, the forecast was cut 18% to $72.50 a barrel. "With OPEC (read Saudi) having decided to allow price to ration supply, as we peer into 2015, the outlook for crude markets is challenging," the analysts said in the report. Deutsche Bank also said companies may have to make deeper cuts in investment than previously expected in the years to 2017 if oil prices remain at around $70 a barrel. Despite the headwinds for the industry, Deutsche Bank lifted its rating on BP PLC to buy from hold, saying its battered-down share price has "material upside" in 2015.
Copyright © 2014 MarketWatch, Inc.