HSBC has lowered its oil price forecast for 2009, but thinks that further OPEC cuts should provide some support in 2010.
HSBC: Short term demand omens look bleak but OPEC cutbacks should provide some support. We downgrade our 2009e Brent forecast to USD50 from USD75. For 2010 and beyond we expect accelerating decline rates and project deferrals to lead to a tightening of, the market, just as occurred after 1986. We upgrade our 2010e Brent forecast to USD75 from USD60.