Member access

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

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
01:39a BANK OF AMERICA : Fitch Upgrades Deaconess Health System (IN) Revs to 'AA-'; Out..
01:32a BANK OF AMERICA : Special Olympics Opens Registration for Unified Relay Across A..
12:49a MICROSOFT : Bank of America joins Chase in dropping support for its Windows Phon..
01/29 BOC Hong Kong considering sale of $6 bln bank unit -sources
01/29 BANK OF AMERICA : Bonus Watch ’15: Brian Moynihan’s Got Good News An..
01/29 AT&T : Most active New York Stock Exchange-traded stocks
01/29 BANK OF AMERICA : Lufkin bank account holders upset; Citizen's National Bank res..
01/29 BANK OF AMERICA : Citizens national bank buys out local bank of america, clients
01/29 Investment Analysts’ Weekly Ratings Updates for Cisco Systems (CSCO)
01/29 BANK OF AMERICA : TerraForm Power Coverage Initiated by Analysts at Bank of Amer..
Advertisement
Chart
Duration : Period :
Bank of America Corp Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF