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Oil could jump by $20 if Ukraine crisis worsens, says BofA -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: Towers and smokestacks are silhouetted at an oil refinery in Melbourne June 21, 2010. REUTERS/Mick Tsikas//File Picture

(Reuters) – World oil benchmark may rise by $5-$20 a barrel relying on the severity of the Russia-Ukraine disaster, Financial institution of America (NYSE:) (BofA) World Analysis mentioned on Tuesday, including that costs may drop by $2-$4 if tensions de-escalate.

Oil hit its highest since 2014 on Tuesday, with Brent futures reaching $99.50 a barrel after Moscow ordered troops into two breakaway areas in japanese Ukraine.[O/R]

The financial institution sees Brent heading to $120 a barrel by mid-2022, with fundamentals justifying a near-term spike and demand projected to rise by 3.6 million barrels per day (bpd) to surpass pre-pandemic ranges at almost 101 million bpd this yr.

“A weaker greenback pattern and a pro-growth macro backdrop, if it certainly happens, may assist crude close to triple digits within the second half of the yr,” the financial institution mentioned in a analysis observe.

A possible nuclear cope with Iran and related sanctions reduction would rapidly translate into decrease oil costs, the financial institution’s analysts famous.

Analysts at BofA imagine Brent costs might want to common $60 to $80 per barrel to maintain the worldwide oil market in steadiness out to 2027.

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