Analysts from Bank of America Merrill Lynch project that the prices could hit $100 per barrel in 2019, while their counterparts at Goldman Sachs forecast the black gold could be sold at $82.50 per barrel by summer.
These predictions are coming at a time Nigeria’s oil production, including condensates, is reported to have increased to 2.07 million bpd, as at April, from 2.02 million bpd in March, ThisDay newspaper reported.
The BofA analysts premised their projection on strong global oil demand growth, quickly falling inventories, and geopolitical issues from Iran to Venezuela. As reported by Business Insider, BofA’s commodity strategists led by Francisco Blanch foresaw that Brent Crude was expected to average $70 a barrel this year and $75 in 2019. Their position was documented in a note.
At 12:27 p.m. Eastern Daylight Time (EDT) on Thursday, oil prices were flat on the day, with Brent Crude at $77.17 and WTI Crude at $71.14.
“We also introduce a 2Q $90/bbl Brent price target for 2019 and see a risk of $100/bbl oil next year, although we are concerned that these market dynamics could unfold over a shorter timeframe,” Blanch wrote in the note.
This year, demand growth is expected at 1.5 million bpd, BofA said, as it revised up its 2019 demand growth by 100,000 bpd to 1.4 million bpd.