Merrill Lynch analyst Francisco Blanch was quoted in the Global Energy Weekly that oil prices could exceed Merrill’s current forecast of $82 a barrel by the fourth quarter of 2010. Blanch pointed to growing demand in China and India together with a weak US dollar as the justification for this assessment.
Ã¢â‚¬Å“Without firm policy action to reduce global oil demand or an unexpected expansion in supplies, a continuation of extremely loose monetary policy in OECD economies next year could ultimately bring about another spike in oil prices well above $100 a barrel as we approach 2011,Ã¢â‚¬Â the report said.
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