U.S. Raises Oil Price Forecasts Because of Increased Demand, OPEC Cuts

(Bloomberg) -- The U.S. government increased its
estimated price for crude oil this year and in 2008 because of
rising fuel consumption and production cuts by the Organization
of Petroleum Exporting Countries.

West Texas Intermediate crude oil, the U.S. benchmark, will
average $65.56 a barrel this year, the Energy Department said in
its monthly Short-Term Energy Outlook. The forecast is up 2.3
percent from $64.06 estimated last month. Oil will average
$66.92 in 2008, up 3.2 percent from $64.83 in last month's
forecast.


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