Brent crude prices to average $61/bbl in 2017 – BAML

Analysts at Bank of America Merrill Lynch notes that the oil prices slipped in late October as production ramped up in a number of key countries including Libya, Nigeria, and Kazakhstan.

Key Quotes

“To counterbalance this growth in output volumes, OPEC came together with key non-OPEC countries to deliver the first joint supply cut since 2008. The historic agreement comes at a key time, as the global oil market is already rebalancing naturally.”

“In our view, this means that Brent crude oil prices should continue to recover next year relative to the current forward. Looking back at history, our $61/bbl projection appears modest. It would imply that oil prices trade at around the levels observed in 2006 or 2009, and slightly above the 2015 average of $56/bbl.”