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.
The largest-ever expansion of Middle Eastern oil-refining is poised to curb the region’s imports of gasoline, reducing dependence on shipments from India and Singapore and sapping margins for European and Asian processors.
Brent oil prices may “push higher” in the next three months as stimulus measures by governments in the U.S., Europe and China boost global demand while supply growth is constrained, according to Bank of America Corp.
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.
There is a “clear trend” for slower economic growth in China going forward, Francisco Blanch, head of global commodity research at Bank of America Corp. said at the Bloomberg Link China Conference in New York today.