• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 4 hours China's Blueprint For Global Power
  • 5 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 1 hour IMO 2020:
  • 1 hour World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 9 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 9 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 6 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 2 hours Deepwater GOM Project Claims Industry First
  • 9 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 3 hours Brexit agreement
  • 11 hours Why don't the other GOP candidates get mention?
  • 11 hours Bloomberg: shale slowing. Third wave of shale coming.
Alt Text

Don’t Expect Oil Prices To Go Much Higher This Year

As sudden oil supply disruptions…

Alt Text

Oil Prices Tank On Global Recession Fears

Oil prices fell once again,…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Bank Of America: $90 Brent May Be Around Corner

Bank of America Merrill Lynch (BofAML) warns that Brent crude oil could reach $90 per barrel stemming the new IMO rules regarding shipping fuels and a weaker dollar courtesy of a de-escalation in the US/China trade war, Reuters reported on Friday.

BofAML claims that the IMO rules regarding the allowable sulphur content, to take effect in 2020, could cause a spike in middle distillate demand, pressuring prices upward. Also pushing up prices could be the weakening dollar should the trade war between China and the United States simmer down.

In February, BofAML estimated that Brent crude would be trading within the $50 to $70 per barrel band through 2024, with prices “anchored” around $60 per barrel, citing rising US shale supplies and slowing oil demand growth. Shorter term, BofAML saw Brent rising to $70 per barrel citing tighter supply as Venezuela, Iran, Mexico, and OPEC produce less oil—some on purpose and some not.

Last May, BofAML warned that oil could rise as high as $100 per barrel this year. At that time, Brent was trading near $77.

Along with its $90 per barrel warning, BofAML said there was a risk that Brent could dip to $50 per barrel, if the trade war between China and the United States were to hurt consumer sentiment and lead to an economic downturn.

“With military tensions rising in the Middle East and trade tensions rising between the U.S. and China, we believe that chances of a tail event driving Brent crude to these price extremes (are) higher than what option markets are currently pricing,” BofAML said in a note on Friday.

Brent options show a 10% chance of prices heading north of $90, and just a 6% chance of it falling below $50 per barrel.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Bill Simpson on May 19 2019 said:
    De-escalation of the trade war with China? In what universe, with Huawei targeted for a possible death sentence if Trump goes all in, unless he gets what he wants with the Chinese caving in to Trump's demands. That will be the first time in human history when 1.4 billion people obeyed the wishes of 320 million. But I guess it could happen.
    The hard liners around Trump want China destroyed. That is impossible, but doesn't mean they won't try. Trump gets a final term, and he won't care what happens to the world economy. It will be time to play golf every day, and cut foreign business deals the rest of the time. And maybe hold an occasional rally to boost his ego, if he can find a way to charge admission. He might make rally attendance a credit course at Trump University.
  • Armondo DeCarlo on May 24 2019 said:
    More like $40 oil is just around the corner.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play