Saudi Arabia to Check Oil Rally in 2011, Merrill’s Blanch Says
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Saudi Arabia, the world’s largest crude exporter, will lead OPEC to increase production next year, avoiding a surge in oil prices that could put global economic recovery at risk, Bank of America Merrill Lynch said.
Oil prices are experiencing steady rising pressures and that puts the Organization of Petroleum Exporting Countries in a position to choose between allowing further increases or “show its might by keeping prices steady,” said Francisco Blanch, head of global commodities research at Merrill Lynch. New York- traded crude only stayed above $100 a barrel for about six months in 2008 “before the world economy collapsed into the worst crisis since the 1930s,” he said.