Business Standard

Brent crude could jump by $20 if Ukraine crisis worsens, says BofA

Global oil benchmark Brent crude could rise by $5-$20 a barrel depending on the severity of the Russia-Ukraine crisis, Bank of America (BofA) Global Research said

Oil, Brent Crude, Oil Prices, Oil Companies

Reuters
(Reuters) - Global oil benchmark Brent crude could rise by $5-$20 a barrel depending on the severity of the Russia-Ukraine crisis, Bank of America (BofA) Global Research said on Tuesday, adding that prices could drop by $2-$4 if tensions de-escalate.
Oil hit its highest since 2014 on Tuesday, with Brent futures reaching $99.50 a barrel after Moscow ordered troops into two breakaway regions in eastern Ukraine.[O/R]
The bank sees Brent heading to $120 a barrel by mid-2022, with fundamentals justifying a near-term spike and demand projected to rise by 3.6 million barrels per day (bpd) to surpass pre-pandemic levels at nearly 101 million bpd this year.
"A weaker dollar trend and a pro-growth macro backdrop, if it indeed occurs, could support crude near triple digits in the second half of the year," the bank said in a research note.
A potential nuclear deal with Iran and associated sanctions relief would quickly translate into lower oil prices, the bank's analysts noted.
Analysts at BofA believe Brent prices will need to average $60 to $80 per barrel to keep the global oil market in balance out to 2027.
 
(Reporting by Seher Dareen in Bengaluru)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 22 2022 | 7:50 PM IST

Explore News