Despite the slowdown in the global economy, crude oil prices have remained high. Citi Investment Research and Analysis believes that Brent crude oil prices will remain range-bound this year, with the average falling a bit. On the demand side, sluggish growth in China should cap prices. Also, higher non-Opec (Organization of the Petroleum Exporting Countries) supply, coupled with the return of Libyan production, should help keep prices low, not only this year, but in 2013 as well. But geopolitical worries such as rising tensions with Iran constitute a key tail risk for oil prices.
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