BofA’s Blanch Says $90 Brent Is Oil Market’s Best-Case Scenario

Bank of America’s commodities and derivatives research chief said his best-case oil-price scenario is Brent averaging $90 for the rest of the year, and the market may go even higher if the stalemate with Iran persists or heats up with fresh fighting.

A pullback hinges on an end to the US and Iranian blockade of the Strait of Hormuz that’s bottling up shipments from the Persian Gulf, BofA’s Francisco Blanch said Monday on Bloomberg Television’s Surveillance. The math problem, he said, is clear: Global supplies are too tight for prices to come down now.