Nordea Bank Sees $100 Oil

A report from Nordea Bank AB said they see oil reaching $100 a barrel by 2012, based on their belief there will be an economic recovery and growth in 2011.

Estimates for the company have oil prices averaging $79 a barrel in the fourth quarter of 2010, increasing to $85.75 in 2011, and to average $102.50 in 2012.

Nordea analyst Thina Saltvedt, said in the report, "In the short term, there is a risk that prices may fall below the underlying trend as fears of a new recession in the U.S. may intensify and weigh on risk appetite. In the medium term, oil prices may surprise on the upside if the rebound in the world economy and the demand for oil is stronger and the increase is more rapid than expected."

Nordea also feels the extra oil capacity of OPEC will drop near the end of 2011, and at that time they believe economic growth will be starting to take off, driving oil prices up.

At that time they also think major oil fields will have pressure upon them to develop even quicker in response to increased demand.