Bank of America: Brent oil price may fall below $50 per barrel
Photo: EPA

Analysts at Bank of America said that the price of Brent crude could fall below $50 per barrel. This could happen if the trade war between the US and China escalates and OPEC+ increases production, writes Reuters.

The Bank has maintained its forecast for the price of Brent oil at $61 per barrel for the last quarter of 2025 and $64 for the first half of 2026. The nearest minimum level for oil may be around $55 per barrel.

"Looking ahead to 2026, we expect US crude oil production to remain flat, while demand could increase if America is able to conclude trade agreements in the coming months," the bank said.

In its latest report, OPEC notes that global oil production will almost match demand next year as OPEC+ plans to increase supply. This differs from their earlier forecast of a deficit in 2026.

Meanwhile, the International Energy Agency (IEA) raised its estimate of oil supply growth this year, but lowered its demand forecast due to the deteriorating economic situation.

Trade tensions adds uncertainty to the market. The President of the United States Donald Trump announced the possibility of suspending some trade relations with China, in particular, oil trade. On Tuesday, the two countries began to introduce mutual port charges.

At the time of publication of the BofA report, on Wednesday, the price of Brent crude oil futures was about $62.48 per barrel, and the price of US WTI crude oil was $58.85 per barrel.

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