Despite dramatic slides in the oil market, some forecasters remain positive on prices and demand going into 2019. A year ahead outlook report from Bank of America Merrill Lynch expects Brent crude to regain its recent losses in 2019 and settle at $70 a barrel. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus.
“Volatility will be high in the near future, but going into 2019, we are constructive on oil prices,” Hootan Yazhari, head of global frontier markets equity research at Bank of America Merrill Lynch, told CNBC’s Dan Murphy on Tuesday.
“We believe oil prices will resume their path back up to $70 average next year, potentially higher in the second quarter for a brief spell of time. We believe the (OPEC) cuts were sufficient,” Yazhari said, predicting a “relatively balanced oil market” and stable inventories next year.
Trader Aleksandar Kumanov