Russia Lowers Price Forecast For 2007

Feb. 19 (Bloomberg) -- Crude oil fell on speculation U.S. fuel inventories are sufficient to meet heating demand in the world's largest energy consumer as the end of winter approaches.

Temperatures in much of the U.S. Northeast, the nation's largest heating oil consuming region, may be above average in the week ending March 4, according to the National Weather Service. Crude oil may fall this week as warmer weather moves into the eastern half of the U.S., curbing demand for heating oil and natural gas, according to a Bloomberg News survey.

Crude oil for March delivery fell 89 cents, or 1.5 percent, to $58.50 a barrel on electronic trading the New York Mercantile Exchange at 5 p.m. in New York. Floor trading is closed today for the Presidents Day holiday.

Twenty-one of 42 analysts, traders and brokers, or 50 percent, said prices will decline this week, according to the survey. Ten expected an increase and 11 forecast little change. The week before, 35 percent of respondents expected futures to fall.

Russia Cuts Forecast

Russia, the world's largest oil producer after Saudi Arabia, cut its forecast for crude prices this year and next, Deputy Finance Minister Tatiana Golikova told parliament today, according to local news services.

The ministry cut its forecast for 2007 to $55 a barrel from $61 a barrel and the 2008 estimate to $53 a barrel from $56, RIA Novosti and Interfax cited Golikova as saying.

Russia calculates its budget according to the price of Urals, the country's benchmark blend of crude. Urals currently trades for about $55 a barrel.

Iranian Oil Minister Kazem Vaziri-Hamaneh said OPEC probably won't need another production cut at current prices, the Islamic Republic News Agency reported Feb. 17. OPEC's 12 members will meet in Vienna on March 15 to examine market conditions.

OPEC's basket price, a weighted average of 11 blends produced by OPEC nations, rose 76 cents to $53.56 a barrel on Feb. 16, the latest available data.