Bank of America cuts 2010 oil demand, price forecast

LONDON, May 25 (BestGrowthStock) – Bank of America Merril Lynch
(BAC.N: ) on Tuesday dropped its oil demand growth forecasts for
2010 to 1.5 million barrels per day from 2.0 mbpd, saying this
was due to anticipated slower global economic growth in the
second half of the year.

“Current market action is pricing in a more muted demand
recovery in the (European) region on the back of lower
consumption and investment growth,” the bank’s commodity
strategist Francisco Blanch said in a note to investors.

The bank also lowered its U.S. crude (CLc1: ) oil price
forecast for the second half of 2010 to $78 per barrel from $92.

“The rapidly weakening EUR is a deflationary event and will
likely translate into a smaller-than-expected USD global economy
and lower USD oil prices,” BofA-ML said.

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(Reporting by Chris Baldwin; editing by James Jukwey)
([email protected], +447990560691)

Bank of America cuts 2010 oil demand, price forecast