Member access

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

SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

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

05/18/2012 | 07:26am US/Eastern
Recommend:
0

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

Recommend :
0
React to this article
Latest news on BANK OF AMERICA CORP
1h ago BANK OF AMERICA : Suspect Wanted in Three Bank Robberies
8h ago WELLS FARGO : Despite age, creator of gift card thrives in young tech world
8h ago BANK OF AMERICA : U.S. Patents Awarded to Inventors in Rhode Island (April 17)
8h agoDJMORGAN STANLEY : Client Balances at Morgan Stanley Wealth Management Near Merril..
10h ago Morgan Stanley Wealth profit seen as proxy for capital return
12h ago BANK OF AMERICA : Merrill Lynch Wins Money Management Institute’s Advisory..
12h ago Barclays reorganizes management of investment bank
13h ago Morgan Stanley profit soars on wealth management, trading
13h ago Morgan Stanley profit soars on wealth management, trading
14h agoDJGoldman Sachs Profit Tops Estimates -- 2nd Update
Advertisement
Chart
Duration : Period :
Bank of America Corp Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Income Statement Evolution
Bank of America Corp : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF