U.S. Oil Seen Trading Above Global Prices Next Year by BofA
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U.S. crude may temporarily rise above global benchmark Brent next year as Middle East output expands while the nation’s supply boom fades, according to Bank of America Corp.
West Texas Intermediate futures, which have been at a discount to Brent for most of the past five years, may need to strengthen to attract imports as U.S. output falters, the bank said in a report dated July 31. Output from the Bakken and Eagle Ford shale oil formations is “rolling over in response to lower prices,” Iran plans to expand exports following last month’s nuclear accord and other OPEC members are also raising production, the bank said.