Oil at $100 Is a Possibility Next Year, Bank of America Says
From Grant Smith at Bloomberg:
Oil prices could rally to $100 a barrel next year, a level not seen since 2014, as supply risks in Venezuela and Iran strain global markets, according to Bank of America Corp.
Brent futures, trading near $77 on Thursday, are set to reach $90 in the second quarter of 2019 as world inventories shrink, the bank said. As that view hinges on OPEC reviving output and a limited impact on Iran from U.S. sanctions, prices could go even higher, it said, becoming the first Wall Street bank to suggest a return to $100.
“Looking into the next 18 months, we expect global oil supply and demand balances to tighten,” Francisco Blanch, head of commodities research at Bank of America Merrill Lynch in New York, said in a report.