Bank of America paints oil price scenarios in 2017

20 September 2016 04:54 pm

Cairo-live: keep Bank of America-Merrill Blanche Brent forecast for record at previous level unchanged, pointing to a widening oil prices expected next year, according to supply and demand developments.

The US Investment Bank said through a report, Tuesday, he still finds the average price of Brent crude at $ 61 a barrel in 2017, with an uncertainty about supplies in Iraq, China and Libya, Nigeria, Kazakhstan.

And noted Bank of America-Merrill blanche to previous evaluation was assumed a shortfall in oil supply the world market with about 800, 000 barrels next year.

The report said that in the event of an increase in production, the forecast deficit will drop by about 500, 000 barrels next year; what would reduce the average price of Brent to 52 dollars a barrel level in 2017, whereas in the absence of any growth in world production, supply or falling faster than expectations in Venezuela or China, the deficit could rise on expectations of between 300 to 500, 000 barrels; up crude price to between 65 to 69 dollars a barrel next year.

Meet the members of OPEC and other producers from outside the Organization in Algeria in September 26, amid anticipation over the possibility of reaching an agreement whereby the production installation, stop the rapid increase in production to support prices.

The report noted that Nigeria's oil production would grow from 1.46 level to 1.87 million barrels a day over the next 6 to 9 months; it means adding 400 thousand barrels a day to the world market.

On the other hand, sees Bank of America-Merrill Blanche possibility of declining oil supplies in Iraq, China and Venezuela, representing potential support for prices in the coming period.