Bank of America forecasts Brent crude oil to average $61 per barrel through 2025

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Bank of America forecasts Brent crude oil to average $61 per barrel through 2025

Bank of America analysts are projecting lower Brent crude next year:

• average US$61 / bbl through 2025

Analysts say OPEC + countries want higher prices:

• fiscal budget deficits emerging across
  OPEC economies amid lower prices

But this is encouraging some members to break
with the agreed production limits. Add in the US
and other non-OPEC producers keep pumping:

• Bloomberg (citing IEA data)  say output from the US, Brazil,
  Guyana, Canada, Argentina is expected to increase by  around 36%

BofA say that only growth in demand will provide comfort to OPEC:

• "OPEC is stuck
  in a difficult situation where weakening oil fundamentals make it
  hard for OPEC+ to maintain higher oil prices."

IEA says that growth in demand, though, will not absorb oversupply.

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Bank of America forecasts Brent crude oil to average $61 per barrel through 2025

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