Comment 34450

By Ryan (registered) - website | Posted October 05, 2009 at 14:00:23

Reported today in Bloomberg:

Oil may jump above $100 next year as emerging market demand rises and “loose” monetary policy weakens the U.S. dollar, Bank of America Corp.’s Merrill Lynch unit said.

The global economy will grow 4.2 percent next year and spare global oil production capacity is 5 percent of current demand, Merrill analysts led by Francisco Blanch said in the bank’s Global Energy Weekly. There are “upside risks” to Merrill’s $82 a barrel forecast for the fourth quarter of 2010, according to the report.

“Without firm policy action to reduce global oil demand or an unexpected expansion in supplies, a continuation of extremely loose monetary policy in OECD economies next year could ultimately bring about another spike in oil prices well above $100 a barrel as we approach 2011,” the report said.

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