Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Bank of America Corp    BAC   US0605051046

Delayed Quote. Delayed Nyse - 12/17 04:00:28 pm
17.26 USD   +3.23%
3h ago BANK OF AMERICA : Declares Quarterly Dividend on Series L Preferred ..
5h agoDJOnDeck Capital Surges Above $20 IPO Price
5h agoDJShire Files 8K - Entry Into Definitive Agreement
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Bank of America Corp : Disorderly Euro Zone Break-up Could Weaken Brent Oil To $60 -BofA-ML

05/18/2012 | 07:26am US/Eastern

A disorderly break-up of the euro zone could push Brent crude prices to as low as $60 a barrel amid the resulting sharp European recession and negative global economic consequences, Bank of America Merrill Lynch (BAC) said Friday.

"If policy makers were unable to stem the contagion following Greece's exit from the euro, it could potentially lead to a chain reaction where other countries have few options but to opt out of the currency union as well," the bank said in a research note.

In the event of the disorderly broad euro zone break-up, oil demand in developed European economies could drop by 2 million barrels a day if the region's economy shrinks by 10%, the bank said.

"This could create a large demand gap in global oil balances resulting in oil prices falling sharply," it added.

But if Greece is the only country to leave the euro zone, Brent could fall to $80 a barrel, while the benchmark could drop to $100 a barrel if the possibility of Greece leaving the euro is explored but does not materialize, Bank of America Merrill Lynch said.

"Finally, if Greece is able to renegotiate its bailout package successfully and stays in the euro, Brent oil prices could rebound to $120 a barrel," the bank adds.

Thursday, the bank said it sees Brent crude averaging $118 a barrel this year and $120 a barrel in 2013, although another round of monetary easing in Europe could push prices as high as $140 a barrel over the next 12 months.

At 1006 GMT ICE July Brent was trading down 54 cents, or 0.5%, at $106.95 a barrel.

-By Konstantin Rozhnov, Dow Jones Newswires; +44 207 842 9956; konstantin.rozhnov@dowjones.com

React to this article
Latest news on BANK OF AMERICA CORP
3h ago BANK OF AMERICA : Declares Quarterly Dividend on Series L Preferred Stock
5h agoDJOnDeck Capital Surges Above $20 IPO Price
5h agoDJShire Files 8K - Entry Into Definitive Agreement
7h ago BANK OF AMERICA : Merrill Lynch Named Institutional Investor Magazine’s &l..
8h ago BANK OF AMERICA : to pay 1M dollars to Florida couple over badgering robocalls
1d ago BANK OF AMERICA : Mortgage Rates Roundup for December 11 (Home Mortgage Rates)
1d ago BANK OF AMERICA : Begins Coverage on Qlik Technologies (QLIK)
1d ago Exclusive - Wells Fargo to raise charge on brokerage accounts
1d agoDJEarnings Outlook Poor for Banks as Jefferies Swings to Loss -- 4th Update
1d agoDJEarnings Outlook Poor for Banks as Jefferies Swings to Loss -- 3rd Update
Advertisement
Chart
Duration : Period :
Bank of America Corp Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF