June 4 (Bloomberg) -- Citigroup Inc., the world's biggest financial services company, raised its forecast for crude oil prices, saying the Organization of Petroleum Exporting Countries may increasingly be able to keep prices from falling.

Citigroup boosted its estimate for average 2007 prices for West Texas Intermediate, a U.S. benchmark, to $62.02 a barrel from $59. It raised the 2008 prediction to $60 from $55 and the 2009 forecast to $55 from $50, the bank said today in a report.

The U.S. bank joins Credit Suisse Group and Merrill Lynch & Co., which have both raised their price estimates for crude oil within the last month. The dollar touched a record low of $1.3681 against the euro on April 27. Ten OPEC nations are partway through production cutbacks that have helped keep oil prices above $60 a barrel for most of the year so far.

``A weak U.S. dollar, rising costs and limited visibility on new sources of long-term non-OPEC supply strengthens OPEC's ability to set a floor under prices facilitated by a creeping increase in market share,'' Citigroup said in the report.

Crude oil futures have averaged $60.57 a barrel so far this year on the New York Mercantile Exchange, down from an average of $66.25 last year. Oil for July delivery was at $64.78 in electronic trading today at 4:07 p.m. in Singapore.

Citigroup also raised its long-term forecast for WTI to $55 a barrel, from $50. Similarly, it raised its estimates for Brent crude, a U.K. benchmark variety.

Credit Suisse, Switzerland's second-biggest bank, on May 16 boosted its forecast for West Texas Intermediate and Brent for the second and third quarter. It increased the estimate for the U.S. variety to $63 a barrel from $62.50, and the prediction for Brent to $66 from $60.50.

Merrill Lynch, the world's third-largest securities firm, increased its forecast for West Texas Intermediate to $66 a barrel for the third quarter, from an earlier estimate of $60.50. WTI will average $67.50 in the fourth quarter, up from an earlier estimate of $61.50, it said.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net.

Last Updated: June 4, 2007 04:10 EDT