Bank of America: Brent will exceed $100 by the end of the year

Wednesday, September 13, 2023 - 18:12
Point Trader Group

Analysts at Bank of America Global Research said that OPEC+ maintaining current supply cuts until the end of the year, in addition to the optimistic view regarding strong demand in Asia, may push the price of Brent crude to exceed $100 per barrel before 2024.

Standard Brent crude futures recorded about $93 today, Wednesday, at 1006 GMT, while West Texas Intermediate crude reached $89.

Bank of America said in a note dated September 12 that Asia is leading the growth in global energy demand, and China continues to enhance its oil reserves to keep pace with its dependence on imports.

Saudi Arabia, an OPEC member, and Russia announced last week the extension of a voluntary reduction in oil production until the end of the year. The Organization of the Petroleum Exporting Countries (OPEC) and its allies such as Russia are collectively known as OPEC+.

The International Energy Agency said that the reduction in oil production, which Saudi Arabia and Russia extended until the end of 2023, will mean a severe deficit in the market until the last quarter.

Investment bank analysts also said that Indian refineries benefited from sanctions on Russia and Iran by obtaining cheaper crude oil supplies and selling more expensive commodities to Europe.

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