Brent Crude Capped at $140 This Year, $175 in 2017, BofA Says
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The upper limit for Brent crude will rise from $140 a barrel this year to $175 in 2017 because of constraints on supply, Bank of America Corp. estimates.
Brent, trading near $117 a barrel in London today, will remain in a price range of $100 to $130 through 2015, supported by rising production costs, increasing budgetary needs in OPEC nations, and stimulus measures by the U.S. Federal Reserve, the bank said in an e-mailed report. Brent won’t fall to less than $80 a barrel until 2017 because any plunge in prices would boost demand, it said.