Credit Suisse cut its fourth-quarter and 2009 West Texas Intermediate oil price forecast in the face of a sagging oil demand curve, and cut its 2008 earnings per share estimates on integrated oil stocks by an average of 8%.
“The pricing mode for oil is changing from marginal demand to marginal supply pricing, driving a larger than normal change in our forecast,” the brokerage wrote in a note to clients.
Credit Suisse noted that while the market was fretting about oil demand, it was concerned about the supply side in the medium term and in the short-term.
It cut its fourth-quarter and 2009 estimate to $75 per barrel from $110.
The brokerage lowered its price target on several companies in the integrated oil sector. (Reuters)