BAML Sees Risk of $30 Oil If Chain of Events Spurs Iran Exports

  • Beijing may decide to ignore Iran sanctions: Francisco Blanch
  • Weaker yuan would hurt China demand for oil priced in dollars
There are two "gigantic risks" for oil, Blanch says.(Source: Bloomberg)
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A further deterioration in relations between the U.S. and China could set off a chain of events that would push oil down more than 50% to as low $30 a barrel, according to Bank of America Merrill Lynch.

President Donald Trump may decide to raise tariffs on the remaining $300 billion of Chinese imports if he doesn’t like what he hears from Chinese President Xi Jinping at this weekend’s G-20 summit in Osaka, Francisco Blanch, the bank’s global head of commodities, said in an interview in Singapore.