BAML Says Don't Rule $100 Out Oil In 2019

Investing.com - Crude oil prices may hit $100 a barrel again, but it's not likely to happen until next year.That's the forecast of Bank of America Merrill Lynch (NYSE:BAC). In a note to clients, the firm said the collapse of Venezuela's oil industry and potential supply disruptions in Iran could push Brent North Sea crude past their $90 target price for mid-2019 up to $100 for the first time since 2014.President Trump's recent decision to renew economic sanctions on Iran could ultimately cut supply from OPEC's third largest producer by as much as 1 million barrels a day. Venezuela's production has fallen by a third in the past two years and BAML expects it to decline by another 500,000 barrels a day in the next 20 months.Crude oil prices are already up 15% this year, with Brent near $80 a barrel.