J.P. Morgan said on Friday it was cutting its forecast for U.S. crude oil prices for the first quarter of 2007 by $16 to $52 a barrel.
"Although we are only revising our full year average down by about $3 to $61 per barrel, the revision is heavily concentrated in the first quarter -- a period that we had expected to be the strongest of the year," according to a research note.
For the full year, the investment bank expects oil prices to average $61.04 a barrel. February crude oil futures on the NYMEX closed at $52.99, up $1.11 on Friday.
J.P. Morgan initiated a price for the full year of 2008 of $51.99.