Bank of America: Oil prices could rise by $20 if Ukraine crisis worsens

In a statement made by Bank of America (BofA) Global Research on Tuesday, Brent crude oil may increase by 5-20 dollars per barrel due to the Russia-Ukraine crisis, and if the tension between the two countries decreases, prices may decrease by 2-4 dollars.

Oil prices hit their highest level since 2014 as Brent futures hit $99.50 a barrel on Tuesday after Russia sent troops to two separate regions in eastern Ukraine.

Bank of America predicts Brent will hit $120 a barrel by mid-2022, with demand rising by 3.6 million barrels a day, surpassing pre-pandemic levels of about 101 million barrels this year.

“If it does happen, a weak dollar trend and a pro-growth macro backdrop could keep crude near triple-digit levels in the second half of the year,” the bank said in a research note.

Bank of America analysts noted that a possible nuclear deal with Iran and the easing of related sanctions will lead to a rapid decline in oil prices.

Analysts at BofA believe Brent prices should average between $60 and $80 per barrel to keep the global oil market stable through 2027.

Translation: Cem Cinginguc

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