Merrill Lynch analyst Francisco Blanch was quoted in the Global Energy Weekly that oil prices could exceed Merrill’s current forecast of $82 a barrel by the fourth quarter of 2010. Blanch pointed to growing demand in China and India together with a weak US dollar as the justification for this assessment.
“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.
