Armed militias have blocked exports from several oil terminals in Libya, once North Africa’s biggest producer, since July. The structure of Brent crude futures, used to price at least half the world’s supplies, is also in their hands.
The cold snap in the Eastern U.S. persuaded hedge funds and other speculators to keep betting on rising natural gas prices, accumulating the most bullish position for this time of year since at least 2010.
Crude prices will probably drop, perhaps as much as 10 percent, if Iranian oil is reintroduced to the world market, Francisco Blanch, head of global commodities and derivatives research for Bank of America Merrill Lynch, said at the Bloomberg Oil & Gas Conference.
Saudi Arabia, the world’s largest crude exporter, will lead OPEC to increase production next year, avoiding a surge in oil prices that could put global economic recovery at risk, Bank of America Merrill Lynch said.
China’s interest-rate cut shows the “urgency of the situation” as slowing growth in the country will trim demand for commodities including metals, Francisco Blanch, the head of commodities research for Bank of America Merrill Lynch said in a television interview on Bloomberg Surveillance Midday with Tom Keene.