Mar 02, 2017 10:58 AM EST
Oil prices are expected to average $50 to $70 per barrel until 2022 according to a recent forecast by Bank of America Merrill Lynch. The evaluation is down from the bank's previous oil forecast of $55 to $75.
BoFA reported that below the oil price bands are oil supply rationing and rapid emerging markets. These factors will demand growth and eventually push for higher oil prices. On the other hand, above the oil price band are global oil supplies and emerging markets that demand destruction that will repress price increase. In general, demand is set to exceed supply through 2022.
"Global oil consumption has expanded by 3.6 million barrels per day in the past two years, the best two-year run rate since 2010/11 and inventories are drawing," BoFA said in its report. "On our latest estimates, oil demand should keep growing by 1.1 million bpd per annum out to 2022, driven entirely by emerging markets." The report added that although carpooling, electric vehicles and autonomous driving could help slow oil demand, it discouraged fast technological adoption to beat oil prices.
As for oil supply, the report projected an annual US shale oil growth of 700,000 bpd through the forecast period. Non-OPEC supply growth could reportedly average 830,000 bpd annually with 80 percent of accumulative gains in the US. Currently, Brent crude oil prices remain to be the lowest for decades. But the report posited that oil prices have recovered because of OPEC and non-OPEC players putting an end to the price war and cutting production by 1.8 million bpd.
The report confidently noted that as oil demand expand steadily while supply stops growing, global inventory levels will draw strongly in the next months and cut the excess down by more than half by the end of the year. This balance will encourage oil prices to trade within BoFA's expected band over the next five years.
The meal delivery company has expanded beyond Britain to 13 other markets, including Australia, France, Hong Kong and Kuwait
The University of Portsmouth is helping its students build a strong personal brand to increase their confidence and enhance their employability.
When it comes to pitching business ideas to potential investors, an entrepreneur's excitement and enthusiasm can be the difference between dreams taking shape or ultimately falling flat.
What is a social media firm worth? Following how retail investors pay attention to company tickers is one piece of the puzzle. In a new study published in International Journal of Economics and Finance, a finance scholar from Michigan Technological University delves into the pricing behavior of social media firms. The study found that investors pay attention to social media stocks over other company stocks.
President Trump on Friday announced the first concrete deal with China to come out of nearly three months of trade talks - a deal to prevent currency manipulation.
Europe's largest economy offered mixed signals on Friday that suggest it's down but not out.
New research finds that despite regulations, CEOs control information release and may do so for their own financial gain
Normally, it's good to believe in yourself. But research from Indiana University's Kelley School of Business indicates that it can be bad advice for amateurs investing online in unregulated, sometimes risky, equity crowdfunded ventures.