Oil prices look set to temporarily hit $90 a barrel during the first half of next year, if not sooner, and risk spiking to as much as $100 a barrel, depending on geopolitical events and other factors, say Bank of America Merrill Lynch analysts.
But they do not see an immediate major jump in prices. For this year, they forecast an average price of $70 a barrel for Brent crude, the international benchmark. They forecast $75 for next year. Their previous forecast was $60.
Prices could climb significantly next year, however. The analysts have a target of $90 a barrel during the second quarter of 2019, with a risk it could go to $100 a barrel. Futures on Brent were trading as high as $78 Thursday.
The price of oil per barrel was as low as $30 a barrel three years ago. It is now forecast to exceed $90 a barrel.
So obviously a great time to stop any local exploration, so that we have to import more from overseas.