Nov. 13 (Bloomberg) -- Bank of America’s Merrill Lynch unit increased its West Texas Intermediate and Brent crude oil forecast for 2010 to an average $85 a barrel because of rising demand, economic stimulus plans and a weak dollar.

Prices may climb to $100 because of the bullish factors, Francisco Blanch, Merrill’s head of commodities research, said in a report dated Nov. 12. The bank previously estimated that the WTI and Brent grades, the U.S. and U.K. benchmarks, would average $75 a barrel next year.

Economic growth “will lend support to a strong rebound in global oil demand,” Blanch said in the report. “Activity has turned around surprisingly quickly in emerging markets, but fiscal spending programs and very loose monetary policy have also floored the rate of contraction in developed economies.

The bank increased its outlook for global oil demand growth in 2010 by 600,000 barrels to 2 million barrels a day. Consumption in emerging economies such as China and India will account for most of the gain, climbing by 1.5 million barrels a day, according to the report.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

Last Updated: November 13, 2009 13:54 EST